Case of Sec 138 is filed for cheque bouncing of a Pvt Ltd Company.Case is filed against 2 directors who have signed the cheques and also on the pvt ltd company.
The accused lawyer has put the point in front of court that for plea recording the directors can go for plea recording invidually but won't go for plea recording on behalf of the company as nothing was passsed in board resolution that in case of cheque bounce these directors would be liable on behalf of the company.Also there is no law which says that if board of resolution doesn't give authority to any director then it would be deemed that Directors who have signed the cheques would be considered as the Authority since its not passed in Board resolution.
Also now the company is defunct and liquidated so Directors have no say since their liablility was limited to the extent of company.
