Director liability in cheque dishonour cases fails when resignation predates the cheque and the person is not the signatory.

A criminal complaint under cheque dishonour law could not be sustained against a person who had resigned as a director before the cheque was issued, whose resignation had been accepted and intimated to the Registrar of Companies, and who was not the signatory to the cheque. On those facts, she was no longer a director on the relevant date and had no role in the cheque transaction, so the summoning order ignored material facts. The complaint, summoning order, and subsequent proceedings were quashed qua the petitioner.

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Issues: Whether the criminal complaint and summoning order were liable to be quashed qua the petitioner on the ground that she had resigned as a director before the cheque was issued and was not the signatory to the cheque.

Analysis: The petitioner had resigned from the Board of Directors before the date of the cheque, her resignation had been accepted by the company, and the prescribed intimation had been sent to the Registrar of Companies. On the relevant date, she was no longer a director and had no role in the issuance of the cheque. She was also not the signatory to the cheque. In these circumstances, the complaint could not be maintained against her, and the summoning order ignored these material facts.

Conclusion: The complaint, the summoning order, and the subsequent proceedings were quashed qua the petitioner.

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