The liability of persons mentioned in Section 141(2) of Negotiable Instruments Act, 1881 is not on account of any legal fiction but on account of the specific part played-consent and connivance or negligence – Dr. Srinubabu Gedela and Ors. Vs. The State of Telangana – Telangana High Court
Hon’ble Telangana High Court held that Section 141(2) of the NI Act provides that a Director, Manager, Secretary or other officer, though not in charge of the conduct of the business of the company, will be liable if the offence has been committed with the consent of connivance or if the offence was a result of any negligence on his part. The liability of persons mentioned in sub-section (2) is not on account of any legal fiction but on account of the specific part played-consent and connivance or negligence. If a person is to be made liable under sub-section (2) of Section 141 of the NI Act, then it is necessary to aver consent and connivance or negligence on his part.