2002 (10) TMI 691

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of 1999 on the file of the Court of the Additional Munsif Magistrate, Nandyal, instituted on a complaint filed by the 1st Respondent under section 138 of the Negotiable Instruments Act (the Act) against the petitioner who is shown as A4. The contention of the learned counsel for the petitioner is that since there is no specific averment in the complaint showing the role played by the petitioner ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in issuing the cheques was part of their duties and as all of them were aware of the fact that the amounts due to the complainant. . . ." As per section 141 of the Act, if the cheque is issued for and on behalf of a company, the company and every person responsible to the company for the conduct of its business, would be deemed to be guilty under section 138 of the Act. Since above referred averm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der the statutory notice, to be issued as per proviso (b) to section 138 of the Act, is not paid and so petitioner cannot be proceeded against under section 138 of the Act because he ceased to be a Director of A-1 even by the date of statutory notice. In fact cause of action for an offence under section 138 of the Act first arises on the date of drawal of the cheque. Various procedures and times p....