TaxTMI 
TaxTMI 
2002 (3) TMI 874
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....itioner resigned as the director of the Leafin India Ltd. (the company) on whose behalf the cheque in question was issued, and since the certificate issued by the Registrar of Companies shows that he ceased to be the director of the company from 6-3-1999, and since the offence of dishonour of cheque was not completed by 6-3-1999 the proceedings against him are liable to be quashed, more so because the company is not made an accused to the proceedings. It is his contention that as per section 141 of the Act, the directors of a company cannot be made liable for an offence under section 138 in respect of the cheques issued for and on behalf of the company, unless the company also is shown as an accused. It is his contention that since the cheq....
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....tioner along with the petition reads as under : "I am surprised to notice that the cheques issued by the company which has signed by me as 2nd signatory are reported to have been dishonoured. This is an absurd situation. The company is making profit, you are fully incharge of the day-to-day affairs of the company. I am no way connected to the management of the Finances or the day-to-day working of the company. Though you are promising that situation will be rectified by you in few days and all dishonoured cheques will paid in full. I see no improvement. I have already stopped signing the cheques as the 2nd signatory. I do not wish to associate with you or with the board of directors any more as director of the company. I am therefore resi....
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....ted in his place subsequently can plead that he was not in-charge of the affairs that company when the cheque was drawn and so he cannot be made liable. In the circumstances like this, though the offence under section 138 becomes complete only if payment is not made within 15 days of receipt of the statutory notice, since the director that tendered the resignation could pay the amount covered by the dishonoured cheque and then resign, he cannot escape his liability under section 138 by tendering resignation after receipt of statutory notice of dishonour without making the payment demanded. Since in this case the notice of dishonour was received by the petitioner on 24-2-1999 and he seems to have submitted his resignation thereafter without ....