sec 138& 141 of Negotiable Inst Act
naresh
(Querist) 07 September 2009
This query is : Resolved
A director ofa company retires and board of directors passed his resignation. Form 32 also filed with ROC at the same time.After one year company while working with other directors bounced a cheque.Third party issues legal notice against the company as well as directors.and also includes the name of the director who resigned one year earlier,all knowingly.what remedy lies with that director who resigned almost one year earlier when the company did agreement with third party and then bounced his cheque.Third party malafidely trying to intermediate the director who has resigned.Can they be stopped from moving the court against the resigned director.pl comment.riven
Shivasurya
(Expert) 07 September 2009
The retired/resigned director from the company prior to the dishonor of the cheque is not liable u/s.138 NI Act, but he has to prove his resignation prior to one year by submitting certifacte from ROC that Form 32 was already submitted before ROC. the same was clearly explained in Parthasarathy & another Vs. Lachan 137 Company Cases 780 (Madras)riven
A. A. JOSE
(Expert) 07 September 2009
Yes, Mr.Shivasurya is right. Even there are some supreme court verdicts in this regard.riven
Sarvesh Kumar Sharma Advocate
(Expert) 07 September 2009
yes,
dt director is not liable for u/s-138 n.i.act.
see case law-s.m.s.farmacotical ltd. v neeta bhatiya & otc. acc 2005 (53)-503.riven
Adinath@Avinash Patil
(Expert) 07 September 2009
If a director of company Rtired before issuing a cheque he will not be liable for offence u/s 138 of N.I.Act. But he will have to prove that he is retired befor issuing of cheque by documentary & oral evidence.riven
