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Ashish Singla 098140 76600 (Cheque Victim's Lawyer. LUDHIANA (PB))     28 July 2013

Cheque signed by authorised signatory

Hi Experts.

1. A firm is prop. concern.

2. Prop. of firm had a authorised signatory ( his son ) to sign his firm cheques in emergency.

3. That son is only authorised to sign but never allowed to see the affairs of that firm.

4. A cheque signed by son to dischage the liabilty of firm, bounced. Complaimant made notice to firm as well as son being aithorised signatory. Process is on u/s 138 against only son but court never questened to prop. to get bail.

5. Court being summoned to son only and accepted bail of son only and case continued against son only u/s138, never u/s 141.

6. Complainant  says that ' I have friendly relation with son and advanced him a friendly loan and son had issued me cheque of above said firm to dicharge the liabilty of son'

Now what is the position of son ?

 


Learning

 3 Replies

Advocate Bhartesh goyal (advocate)     29 July 2013

Son is liable for the punishment/consequences of cheque bouncing.

R Trivedi (advocate.dma@gmail.com)     29 July 2013

Only the prop of the firm is responsible for the act of prop firm.

 

Account is of the prop firm, not in the name of "son".

 

S.141 is not applicable on prop firm. It is not clear, how and under what paper son is made authorised signatory with the Bank.

 

Under S.138, it appears son will be set free after due process.

Advocate Bhartesh goyal (advocate)     31 July 2013

Son is the drawer of cheque so he is also liable for the cosequences. 


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