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Rajan Mehta   12 August 2021

Under 138 ni

signing authority of proprietorship firm is responsible for liability under 138 ni


Learning

 4 Replies

Advocate Bhartesh goyal (advocate)     12 August 2021

yes, signing authority is liable for consequences of dishonour of cheque

Dr J C Vashista (Advocate)     12 August 2021

Proprietorship firm is itself "ONE" man enterprise which do not involve any other person/ authority to issue/ sign cheque, isn't it ?

If so, how the proprietor can escape liability for dishonoured cheque ?. 

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     12 August 2021

Who signed the cheque? Proprietor himself or an authorised employee of the Proprietor? In any case the Proprietor is liable to be prosecuted under Section 138.

P. Venu (Advocate)     12 August 2021

You have not posted the material facts.


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