Legal Question in Criminal Law in India

Sec138 of NI Act

In the capacity of employee I signed jointly with other person some cheques for certain suppliers for a Company. Cheques got dishonoured approx. 6-8 months after I left the Company. Those supplier filed case u/s 138 of NI Act. Party was in knowledge of my leaving the Company well before deposit and dishonour of cheque. How can I defend myself on this as transaction was purely between Company and party.


Asked on 7/18/07, 11:46 pm

3 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: Sec138 of NI Act

A signatory of a cheque is prima facie liable under section 138 NI Act.

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Answered on 7/29/07, 5:15 am
G. M. Gupta gmguptaandassociates

Re: Sec138 of NI Act

show that u had signed as agent and so ur principal is liable not u.

thats it....... nothing to worry.

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Answered on 7/21/07, 2:55 pm

Re: Sec138 of NI Act

prove the fact that you had signed the cheques in the capacity of employee of the company and also that you were authorised through resolution/authority letter of the company authorising you to sign the cheques on behalf of the company and also that you were not in domin of funds when the cheques were presented for encashment etc.

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Answered on 7/19/07, 1:13 pm


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