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Anil Agrawal (Retired)     19 September 2009

138

 A company has filed a complaint u/s 138 against another company and four directors out of whom two died. The sum is Rs.36000 in all comprising 6 cheques.

In the worst scenario, what would be the liability of two surviving directors? The case was filed in 1999. No hearing took place so far. 



Learning

 6 Replies


(Guest)

Maximum fine of Rs.72,000/- and/or imprisonment SI OR RI of one year or both. - Worst Scenario

Why has not the trial proceeded?

Jithendra.H.J (Lawyer)     19 September 2009

liability? it depends on the cirucmstances of the case, now a days lot of judgments are coming infavour of the accused!

Sachin Bhatia (Advocate)     19 September 2009

If the cheques were signed by the surviving directors than their liability arises.

Punishment U/s 138 of N.I. Act - Imprisonment for  a term which may extend to two year, or with fine which may extend to twice the amount of the cheque, or with both:
 

 

Anil Agrawal (Retired)     19 September 2009

 The case filed in 1999 i.e. before amendment. Fine of 72000 on each? Mystery why the trial not started (no question of proceeded). Out of the six cheques, one is dated by the payee himself three days after the death of the drawer. Any comment?


(Guest)

Earlier you had mentioned drawer is a Company, therefore death of authorised signatory is immaterial. Therefore your statment 'death of drawer" would be incorrect.

Anil Agrawal (Retired)     20 September 2009

 There is no incongruity. The cheque was drawn on behalf of the company by the Managing Director who died.


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