Legal Question in Banking Law in India

Negotiable instruments act

In case of dishonour of cheque issued by the company whether the MD or Director who is involved in the day to day affairs of the Comapny is Liable? or signatory of the Cheque who may be a manager is liable?


Asked on 1/29/08, 12:57 am

5 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Negotiable instruments act

generally the signatory is held liable but as this is a company you can sue md, director or any officer in charge of day to day affairs of the company.

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Answered on 1/29/08, 5:27 am

Re: Negotiable instruments act

yes,both are liable to be prosecuted as per section 142 of NIAct.

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Answered on 1/30/08, 11:51 am
Vijay Chandavale Advocate Vijay Chandavale & Associates

Re: Negotiable instruments act

All persons including directors if they are responsible for day to day affairs are and can be made accused under Section 138 whether they are managers or directors the provision doesnot make any difference

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Answered on 1/30/08, 12:24 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Negotiable instruments act

In most of the cases the signatory of the company is held liable but in here you can sue the director or MD.

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Answered on 1/30/08, 5:49 am
J. Radhakrishnan independent Practice

Re: Negotiable instruments act

You have to issue notice to the company, its MD or Directorand the signatory to the cheque alleging that each one of them in charge and conduct of the day to day affairs and on that allegation each one of them can be held liable

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Answered on 1/29/08, 3:49 am


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