Check bounce and missuse of poa

If the Cheque issued by or on-behalf of the Company is dishonored, then, the persons in-charge of and responsible to the affairs of the Company can also be booked for an offence under section 138 of N.I.Act.

hello,

have you got any notice from the bank ?

regards-

rahul.gogreen@gmail.com

Thanks Rama,

So if I understand your inputs, If A has given full power of Attorney to B and B had signed the check which bounced, I can book B under the 138 offence along with A. Is that correct understanding. I am checking because A does not have any money to negotiate and B will negotiate only if he is likely to get punished.

Thanks,

Sandeep

Law gives very vide meaning to constructive and vicaraious liablity that all persons who  have assisted are liable.

But to persue such actions is lengthy and expansive.

You mention "company"  and "directors", but it is not clear who all are directors.

If it is a Private Limited company then it will have more than one director, find out if B is a director.

If it is a Partnership  firm then also it will have more than one partner, find out if B is a partner.

If it is a prop firm in the name of A,  and B has taken GPA from A, then it is somwhat tricky.

If B is a Director or partner as the case may be, then he can certainly be prosecuted along with the company/firm.

It is prop firm in name of A and A has given full POA to B. That is what B is presenting in court. But interestingly I have notarized investment document in which B is referenced as propriter and I have some checks whcih B has signed as prop not sure if he did that by mistake.

In such case can I trap B who has all the money