Ni Act
Querist :
Anonymous
(Querist) 18 March 2010
This query is : Resolved
NI ACT
CONSUMER COOPERATIVE SOCIETIES
PRESIDENT AND SECRETARY ARE NOT LIABLE FOR CHEQUE DEBTS
PROVIDE ME PROVISIONS OF LAW
ALSO CITATIONS
Raj Kumar Makkad
(Expert) 18 March 2010
Who so ever had issued the cheque against lawful debt of the society putting their signatures thereon which bounced later on and on demand by complainant, no payment of hte cheque amount was made within the stipulated period are liable to face 138 NI Act and no specific law or citations are required on this point whether it may be got signed by President or Secreatry of any society
Parthasarathi Loganathan
(Expert) 18 March 2010
I further add that the notice of such dishonour must be notarised by an Notary Public
Santosh Kumar.K
(Expert) 18 March 2010
whoever signed the dishonoured cheque is liable to face the proceedings u/s138 NI act.Not only that,the person who is actively managing the cooperative society can also be impleaded in the said case
Parveen Kr. Aggarwal
(Expert) 18 March 2010
Not only the signatory of a cheque on behalf of an incorporated body is liable but also the persons in-charge of and responsible to such body for the conduct of its affairs, are liable.
Section 141 of the Negotiable Instruments Act, 1881:
"141.(1)Offences by companies:- If the person committing an offence under section 138 is a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any person liable to punishment if he proves that the offence was committed without his knowledge, or that he had exercised all due diligence to prevent the commission of such offence.
(2)Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly,
Explanation.-For the purposes of this section,-
(a)"company" means any body corporate and includes a firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm."
G. ARAVINTHAN
(Expert) 19 March 2010
wont the authorised signatory who signed in cheque not liable for that debt?
ad. creaminall
(Expert) 19 March 2010
i agree with raj kumar, santosh kumar and pravin.
