Director discharged from Section 138 prosecution after proving resignation before cheque issuance through proper company documentation

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Full Text of the Document

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....HC discharged petitioner-director from prosecution under Section 138 Negotiable Instruments Act after finding no prima facie case existed. Petitioner had resigned as director on 18.12.2015 before cheque issuance on 11.03.2016, with resignation properly accepted by company and notified to Registrar of Companies through Form 32. Court held that director whose resignation was duly accepted and notified cannot be held vicariously liable for company's subsequent acts. Relying on precedents including Mohd. Akram Siddiqui and Harshendra Kumar cases, HC determined that public documents establishing resignation could be considered at discharge stage rather than requiring full trial, as continuing prosecution would constitute abuse of process when accusations cannot stand on documentary evidence.....