Category: Cheque Bounce

SUPREME COURT OF INDIA – NEGOTIABLE INSTRUMENTS ACT SECTION 138 – PROSECUTION OF PERSON IN CHARGE OF A COMPANY IS NOT POSSIBLE IN THE ABSENCE OF THE COMPANY AS AN ACCUSED

Supreme Court of India Date of Judgement: 27.04.2012 In this Criminal Appeal the common proposition of law that has emerged for consideration is whether an authorised signatory of a company would be liable for prosecution under Section 138 of the Negotiable Instruments Act without the company being arraigned as an accused. These two appeals were initially heard by a two-Judge Bench and there was difference of...

SUPREME COURT OF INDIA – A CHEQUE ISSUED FROM THE ACCOUNT OF GUARANTOR AS SECURITY ALSO WOULD FALL WITHIN THE PURVIEW OF SECTION 138 OF NI ACT

Supreme Court of India Date of Judgement: 12.08.2002 The security cheques also would fall within the purview of the Section 138 of NI Act and a person could not escape his liability, as such, when there is existence of debt on the date of presentation of the cheque and the security cheques issued are dishonoured, the accused would be liable under...