Querist :
Anonymous
(Querist) 22 October 2010
This query is : Resolved
A trust doesn't have sufficient funds and dishonors a cheque. Later trustees prove that trust is bankrupt, are trustee personally liable under negotiable instruments act?
M/s. Y-not legal services
(Expert) 22 October 2010
Yes.. Trust is liable under negotiable instruments act.
s.subramanian
(Expert) 23 October 2010
The trust is not a legal entity. Hence it is the trustees who are personally liable and no prosecution can be launched against the trust as such. The trustees have to face prosecution for dishonor.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 23 October 2010
Only those trustees who were taking part in its transactions . A case has be made our u / s 141 of NI act.
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