Resigned director not liable for cheque dishonour prosecution where cheques were issued after resignation and no role was shown.

A director who had resigned before the cheques were issued could not be fastened with vicarious liability under Section 141 of the Negotiable Instruments Act for an offence under Section 138, because the resignation was undisputed, was acknowledged before issuance, and no material connected him with the company's affairs on the relevant date. The cheques were issued and signed by another authorised person after he had ceased to be a director, so the complaint against him could not be sustained and was liable to be quashed. The cited precedent was distinguished on the facts, as it involved disputed resignation and cheque dates.

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Issues: Whether a director who had resigned before the issuance of cheques could be held liable for offences under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881, and whether the complaint against him was liable to be quashed under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: The resignation of the appellant was not disputed, and it was acknowledged by the Registrar of Companies before the cheques in question were issued. The cheques were issued after the appellant had ceased to be a director, were signed by another authorised person on behalf of the company, and no material was shown to connect the appellant with the company's affairs on the relevant date. In these circumstances, the basis for fastening vicarious liability on him under Section 141 of the Negotiable Instruments Act, 1881 was absent, and the cited precedent was held to be factually distinguishable because it involved disputed dates of resignation and cheque issuance.

Conclusion: The complaint could not be sustained against the appellant and was liable to be quashed; the relief was granted in favour of the appellant.

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