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??

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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.