Legal Question in Business Law in India

Negotiable Instruments Act. Director Resigned

I was a director in a company which issued a cheque (and one of the signatories of the cheque). But the cheques were presented 6 months after i resigned due to an understanding with the existing board. The cheques bounced because the accounts were closed by the existing board of directors.

I agree that it is an offense under sec 138 and the complainant should get his money. But am I liable for this as i was not incharge of the affairs of the company when the offense was committed since i had resigned 6 months prior to the cheques being presented.


Asked on 9/02/08, 2:09 am

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

Re: Negotiable Instruments Act. Director Resigned

You can state all the above facts and get acquitted if the complainant has filed a complaint against you.

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Answered on 9/02/08, 10:37 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Negotiable Instruments Act. Director Resigned

It is not the date of presentation of the cheque but the date of issuance of the cheque which is relevant to determine liability. Since you are signatory on the cheque, you are liable.

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Answered on 9/02/08, 11:02 am


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