Legal Question in Banking Law in India

liabilty of POA holder if he signs the check on behalf of POA executant

If POA holder signs a check on behalf of POA executant(NRI), who will be liable u/s 138 of NI Act, in case the said check is dishonoured?Is there any difficulty to prove consideration in such cases?


Asked on 9/06/07, 3:31 am

3 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: liabilty of POA holder if he signs the check on behalf of POA executant

The cheque even though signed by the agent(POA holder)it is the principal who is the drawer is liable. Agent is not personally liable for the same as he is not the drawer. Sec.139 of N.I.Act contains a presumption that the cheque is in discharge of liability and it is for the drawer to prove the contrary.

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Answered on 9/06/07, 9:24 pm

Re: liabilty of POA holder if he signs the check on behalf of POA executant

Both POA holder and POA executant shall be liable.Execution of cheque and handing over of the same is sufficient and presumption lies that there was a lawful consideration.It is upon the executant to prove that there was no consideration.In case of need contact with details and papers.professional charges are applicable.

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Answered on 9/06/07, 3:41 am
Homi Maratha N.N. Maratha & Co.-Advocates

Re: liabilty of POA holder if he signs the check on behalf of POA executant

yes POA holder and POA executant are liable. you may contact me personally alongwith details

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Answered on 9/06/07, 4:29 am


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