S. 138 of n.i. act

Jagdish (Querist) 21 May 2012 This query is : Resolved
IF A a listed company has issued the cheque to B company but when B company has deposited the cheque it was dishonoured due to stop payment instructions given by A company. Now, is Mr. C, who is working as company secretary in A ltd, is liable for the offence under section 138 of Negotiaible instrument act??

Follow Query

Report Abuse

V R SHROFF (Expert) 21 May 2012
Only if cheque was signed & issued by him, or under his instruction.
If he is unaware of issue of cheqe, he cannot be liable

DEFENSE ADVOCATE.-firmaction@g (Expert) 21 May 2012
Yes it is a vicarious liability.

However why there was STOP PAYMENT., by the A company.

R.K Nanda (Expert) 21 May 2012
Academic query.

Amit Minocha (Expert) 21 May 2012

He can be sued along with the Co. only if he was a signatory to the cheque and also if he was the person responsible for day to day affairs of the Co.

Shonee Kapoor (Expert) 21 May 2012
Academic Query.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Ask Query
Unanswered Queries