Legal Question in Banking Law in India
cheque bounce
I was one of the 4 directors for a company till 1/06/05, after which i resigned and filed the same at the r.o.c. During my tenure i along with another signatory issued some cheques to a supplier which apparenty bounced, once during feb 2005 (with endorsement 'present again') and again on 15/06/05 (i had no idea of that since it happened after the date of my resignation ). I only came to know after i received a notice from the supplier a month later. I didnt bother to reply since i was not a part of the company. The other 3 directors are still running the company till date and have been given similar notices. Now i recieve a court summons dated in Jan.I need to know what will be the extent of damage to me if proven guilty or do i have chance to fight the case .Please advice
4 Answers from Attorneys
Re: cheque bounce
As it seems from your questions you are a signatory to the cheques in question and prima facie you are liable for dishonour of the said cheque. However to prove you guilty the complaint should contain a specific averment regarding your responsibility in conduct of business of company to satisfy the requirements of Section 141. If the complaint does not state that you were responsible for the conduct of the affairs of the company, the Prosecution against you under Section 138 is liable to be quashed.
Akhilesh Dubey.
Re: cheque bounce
You were supposed to give reply to the notice which you have not cared for and therefore you are required to present before the Court and inform the Court if you have entered into any agreement that you shall not be liable for any amount of cheque which were signed by you when you were in the Company, after you have resigned from the Company. From you say it seems that the cheques were issued prior to your resignation and therefore you are liable which please note, for further queries please call on 09426101233 or send an email to [email protected] if you wish any further clarification.
Re: cheque bounce
since summons has been issued, you have to appear and secure bail. if offence is proved all of you jointly have to pay the dobule the cheque amount and imprisonment upto two years. you have a defendable case. fight it out.
Re: cheque bounce
As per the recent Supreme Court Judgment, it is very clear that all the Directors who were responsible in running the affairs of the Company at the time of issusanse of the Cheque are liable for the ommissions and commissions, subject to the complaint being specific about the same.The date of second presentation and your resigning from the post would not come to your rescue.
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