https://www.taxtmi.com/caselaws?id=765366 The Calcutta HC allowed the petitioner's application in a dishonour of cheque case under Section 138/141 of the Negotiable Instruments Act. The petitioner had resigned as director before the dishonored cheque was issued, with resignation taking effect from the date the company received the notice. The court held that a director's resignation is effective upon receipt by the company, regardless of whether Form 32 was filed with the Registrar of Companies or whether the company formally accepted the resignation. Since the petitioner resigned prior to cheque issuance and the complaint lacked specific allegations against him, continuation of proceedings would constitute abuse of process. The court emphasized that vicarious liability under Section 141 requires strict compliance with statutory requirements. en-us Mon, 27 Jan 2025 00:00:00 +0530 Fri, 31 Jan 2025 07:54:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765366 The Calcutta HC allowed the petitioner's application in a dishonour of cheque case under Section 138/141 of the Negotiable Instruments Act. The petitioner had resigned as director before the dishonored cheque was issued, with resignation taking effect from the date the company received the notice. The court held that a director's resignation is effective upon receipt by the company, regardless of whether Form 32 was filed with the Registrar of Companies or whether the company formally accepted the resignation. Since the petitioner resigned prior to cheque issuance and the complaint lacked specific allegations against him, continuation of proceedings would constitute abuse of process. The court emphasized that vicarious liability under Section 141 requires strict compliance with statutory requirements. Case-Laws Indian Laws Mon, 27 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765366