Adhiraj Singh V. Yograj Singh And Others, S.L.P. (Crl.) No(S). 16051-16052 of 2023

Brief Facts

• Three post-dated cheques dated 17.07.2019, 17.09.2019 and 23.09.2019 were issued by the Respondent No. 2 – Company on 12.07.2019. The appellant was the director of Respondent No. 2 – Company from 28.09.2016 to 21.06.2019.

Issues

• Whether a retired director of the Company be held liable for offence under section 138 of the NI Act when the cheque was issued after his retirement?

Held

• The proceedings and complaint were quashed to the extent of the retired director. The findings of the Court are as under:
• It is also not in dispute that the cheques issued by the Company were signed by another competent person on behalf of the Company. Once the facts are plain and clear that when the cheques were issued by the Company, the appellant had already resigned and was not a director in the Company and was not connected with the company, he cannot be held responsible for the affairs of the Company in view of the provisions as contained in Section 141 of the NI Act.

Relevant Para No.

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