Please help me resolving the below query-
- Company A ( a Pvt Ltd company ) supplies materials to compnay B ( a Pvt Ltd company )
- Company B issues a cheque to company A against supply of materials
- The cheque is signed by Mr X , one of the directors of Company B . The other 2 directors of company B are Mr Y and Mr Z
- Before the cheque is deposited , Mr X expires
- Company A deposits the cheque on due date , the cheque is dishonored on the ground of " Insufficient fund "
- Company A issues a notice under Section 138 of the Negotiable Instruments Act to Company B and its other Directors Mr Y and Mr Z
- Since Compamy B does not pay against the dishonoured cheque within the stipulated date , Company A files a case against Compnay B under NI Act
The query is as below :
1. Since Mr X had expired , Company A did not include his name in the notice u/s 138 . Is it legally right ?
2. Since Mr X had expired before the cheque was presented for payment , can section 138 be enforced?
