Legal Question in Criminal Law in India

Sir,

I am a director of a company.One of the director issued a cheque for a supplier dt. 5.4.2009.But the cheque got bounced .As the company was under loss and was also subsequently put under SARFESi act by the bank and the bank had sold all the properties and assets of the company and recovered their due.

In the meantime the director who had signed the cheque had taken a digital signature from me and filed with ROC as that he has resigned the company as of 1st April 2009 which was not known to me

.Now there only 2 people left in the company one is the M.D and me as another director.Now the case for cheque bouncng has been filed by that company which is yet to come.

I am only a director and there is M.D for the company.My question is when the cheque bounce case comes would i be liable for the cheque amount or only the M.D and the person who had signed the cheque.

My assumption is that now when the cheque bounce case comes the director who had issued the

cheque would take defence stating that he was not at all a director when the cheque was issued as he has made the resignation before the cheque date with my digital signature.

In this scenario, what would be the fate of the cheque bounce case filed by the supplier?The director who had issued the cheque has gone absconding

Alos as i was not aware of the cheque issued would i also be liable for that NI 138 case?

Help me out.


Asked on 11/30/10, 10:42 pm

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Aim of a case U/s.138 is to punish accused of an offence under that section.

Generally, signatory of cheque is liable U/s.138. Apart from signatory of cheque, director who are responsible for day to day business and affairs of the company.

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Answered on 12/14/10, 9:21 pm


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