Just a moment...

Report
FeedbackReport
Bars
Logo TaxTMI
>
×

By creating an account you can:

Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

Cheque Bounce Case: Director Faces Liability Despite Not Being Signatory.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Petitioner, a director in respondent company, challenged complaint and summoning order against her u/ss 138 and 141 of NI Act for dishonour of cheque issued to complainant. HC held petitioner prima facie liable u/s 141 as being in charge of company's affairs despite not being signatory. Mere non-signatory status didn't absolve liability if requisites u/ss 138 and 141 met. MM rightly issued summons after observing prima facie case and non-payment despite demand notice. No illegality in summoning order to warrant quashing u/s 482 of Code. Petition dismissed.....