Independent, Non-Executive Directors Of Company Cannot Be Held Liable Under Section 138 Of NI Act Without Specific Allegations: Delhi High Court

The Delhi High Court ruled that independent and non-executive directors of a company cannot be held liable under Section 138 of the Negotiable Instruments Act (NI Act) unless specific allegations are made against them. The court emphasized that mere association with the company is insufficient to establish liability. This ruling provides clarity on the legal responsibilities of independent directors, protecting them from unwarranted prosecution in cases where they are not directly involved in the alleged offenses.