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Sanjay (VP)     25 November 2010

Forged Signatures on cheque---section 138 of NI Act

The complainant is a Director No.1 of a company.He has created his forged resignation purported to be signed and accepted by the Director No.2.Then he forged signatures on 2 cheques of Director No.2 and got them bounced on the ground of insufficient funds.The cheques were written in the name of Director No.1.He even went to the extent of forgedly creating minutes of the board of directors in which a third person was appointed as director in place of director no.1.The said third person refuses to have been appointed as director and has not even given his consent to act as director. The company is a private limited company. There was no legally enforceable liability in the name of Director No.1 or on the cmpany. The networth of the company is negative and there are no assets left. The Director No.1 has created a forged agreement between him and Director NO.2 that the cheques were issued against the trasfer of shares and some other liability to be paid by Director No.2 to him. He has arranged two fraud witnesses to witness this agreement. The signatures of Director No.2 are forged in the said agreement. The Director No.2 got the photocopy of bounced cheques verified by a experienced handwriting expert and the opinion is that the signatures are forged. The Director No.1 has filed a complaint u/s 138 of NI Act.

What should be done to save the Director NO2 who is innocent and bring the Director No.1 to justice?

Please help.



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 1 Replies

Solicitor Chirag Shah (Advocate & Solicitor)     25 November 2010

In my view,

You should Director No.2 should initiate Criminal Proceeding in competant criminal court about cheating  and forgery.

His liability will come to end and he can be proved inocent as soon as forgery of Dorector No.1 is proved.


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