Authorised signatory of a cheque
Sohit
(Querist) 16 August 2011
This query is : Resolved
whether a authorised signatory of a proprietor firm liable for prosecution under section 138 of Negotiable Instruments Act for dishonour of cheque. Authorised Signatory is not the proprietor of the said firm and the said cheque is drawn towards the liability of the proprietorship concern. Brother of the authorised signatory is the proprietor of the said firm, in such case whether the authorised signatory will be held liable for prosecution under section 138 of NI Act. Please reffer some case laws on this point.
ashok kumar singh
(Expert) 16 August 2011
the case is not maintainable if the authorised signatory has been made as accused, particularly in a case of a proprietorship firm.