{"id":218651,"date":"2019-08-27T09:53:22","date_gmt":"2019-08-27T04:23:22","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=218651"},"modified":"2019-08-29T12:46:58","modified_gmt":"2019-08-29T07:16:58","slug":"bom-hc-director-who-resigned-before-issuing-of-cheques-held-not-liable-under-s-138-r-w-s-141-of-ni-act-for-dishonour-thereof","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/27\/bom-hc-director-who-resigned-before-issuing-of-cheques-held-not-liable-under-s-138-r-w-s-141-of-ni-act-for-dishonour-thereof\/","title":{"rendered":"Bom HC | Director who resigned before issuing of cheques held not liable under S. 138 r\/w S. 141 of NI Act for dishonour thereof"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Bombay High Court:\u00a0<\/strong>S.S. Shinde, J. allowed a criminal application filed against the order of the Magistrate whereby he rejected the application filed by the applicant for recalling the issuance of process under Section 138 of the Negotiable Instrument Act, 1881, against him.<\/p>\n<p style=\"text-align: justify;\">The applicant was one of the accused in a criminal complaint filed by the complainant against one Echovox (India) (P) Ltd. and its directors. Echovox defaulted in payment of lease credit extended by the complainant. The cheques issued by Echocvox in favour of the complainant for the charge of the said liability were dishonoured on the presentation for insufficiency of funds. The applicant was one of the directors of Echovox. However, he claimed that he had already resigned from the said position before the subject cheques were issued. After the complaint was filed, the Magistrate had issued process against all the accused including the applicant. Thereafter, the applicant filed an application for recalling of the said order against him. However, the Magistrate rejected the application. Aggrieved thereby, the applicant filed the present application.<\/p>\n<p style=\"text-align: justify;\">The High Court, on perusal of the record, took note of the fact that in his reply to the statutory notice sent by the complainant, the applicant had informed them that he had ceased to be a director of the said company, and necessary Form No. 32 in that regard had already been filed with the Registrar of Companies. On facts of the case, the Court held:<\/p>\n<p style=\"text-align: justify;\"><strong>&#8220;As already observed hereinabove, the Applicant was not the director of the accused 1 company at the time of issuance of cheques and therefore is not held to be responsible for the business of the said company as averred in the complaint. Respondent 2\/Complainant has not brought on record any unimpeachable and incontrovertible evidence to show that the applicant is concerned with the issuance of cheques.&#8221;<\/strong><\/p>\n<p style=\"text-align: justify;\">In such view of the matter, the Court allowed the application filed by the applicant and set aside the order of the Magistrate impugned herein.[Ramesh Pahulraj Makhija v. State of Maharashtra, <a href=\"http:\/\/scconline.com\/DocumentLink\/8gerXJOw\"><b>2019 SCC OnLine Bom 1656<\/b><\/a>, decided on 23-08-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court:\u00a0S.S. Shinde, J. allowed a criminal application filed against the order of the Magistrate whereby he rejected the application filed <\/p>\n","protected":false},"author":8808,"featured_media":74381,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2862,37265],"class_list":["post-218651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-dishonour_of_cheque","tag-section-138-of-ni-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bom HC | Director who resigned before issuing of cheques held not liable under S. 138 r\/w S. 141 of NI Act for dishonour thereof | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/27\/bom-hc-director-who-resigned-before-issuing-of-cheques-held-not-liable-under-s-138-r-w-s-141-of-ni-act-for-dishonour-thereof\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bom HC | Director who resigned before issuing of cheques held not liable under S. 138 r\/w S. 141 of NI Act for dishonour thereof\" \/>\n<meta property=\"og:description\" content=\"Bombay High Court:\u00a0S.S. 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2024","format":false,"excerpt":"\u201cFrom the perusal of Section 138 N.I. Act, it is clear that if any invalid cheque is presented before the Bank and the same was dishonoured, then no liability under Section 138 of NI Act would be attracted, and the cheque of Allahabad Bank is invalid after 30-09-2021 after merging\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Allahabad High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":217366,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/07\/26\/bom-hc-question-whether-complaint-under-s-138-ni-act-filed-within-limitation-period-is-to-be-considered-at-trial-quashing-of-issue-of-process-denied\/","url_meta":{"origin":218651,"position":1},"title":"Bom HC | Question whether complaint under S. 138 NI Act filed within limitation period is to be considered at trial; quashing of issue of process denied","author":"Bhumika Indulia","date":"July 26, 2019","format":false,"excerpt":"Bombay High Court:\u00a0S.S Shinde, J. dismissed a criminal application filed against the order of a Judicial Magistrate thereby issuing process against the applicant for an offence punishable under Section 138\u00a0(dishonour of cheque)\u00a0of the Negotiable Instruments Act, 1881. The complainant-respondent had alleged that he advanced a loan of Rs 30 lakhs\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":364270,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/17\/ori-hc-insolvency-no-defence-for-directors-in-cheque-dishonour\/","url_meta":{"origin":218651,"position":2},"title":"Insolvency proceedings no shield for Directors in cheque dishonour cases under S. 138 NI Act: Orissa HC","author":"Editor","date":"October 17, 2025","format":false,"excerpt":"\u201cOn the request of the petitioner, the complainant waited and represented the cheque through its banker, but once again it got dishonoured with the same remark - refer to drawer.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Cheque dishonour","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Cheque-dishonour.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Cheque-dishonour.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Cheque-dishonour.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Cheque-dishonour.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":266788,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/05\/12\/banks-slip-denoting-cheque-has-been-dishonoured-a-prima-facie-evidence-tis-hazari-courts\/","url_meta":{"origin":218651,"position":3},"title":"Law on S. 146 NI Act | Bank\u2019s slip denoting cheque has been dishonoured: A prima facie evidence? Explained by Tis Hazari Courts","author":"Bhumika Indulia","date":"May 12, 2022","format":false,"excerpt":"Tis Hazari Courts, New Delhi: While addressing a decision revolving around Section 138 of Negotiable Instruments Act, 1881, Sanjay Sharma-II, Additional Sessions Judge-03, upheld the decision of the Trial Court and held that all the ingredients of Section 138 NI Act were fulfilled by the complainant. A criminal appeal under\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Tis-hazari","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":129291,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/05\/06\/only-drawer-of-cheque-can-be-made-an-acccused-in-proceedings-for-dishonour-of-cheque\/","url_meta":{"origin":218651,"position":4},"title":"Only drawer of cheque can be made an acccused in proceedings for dishonour of cheque","author":"Saba","date":"May 6, 2017","format":false,"excerpt":"Gujarat High Court: A Bench comprising of J.B. Pardiwala, J. has directed quashing of criminal proceedings against the applicant and co-accused husband, for dishonour of cheque under Section 138 of the Negotiable Instruments Act. The Applicant filed an application under Section 482 of the CrPC, invoking inherent powers of the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/04\/GujHC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/04\/GujHC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/04\/GujHC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/04\/GujHC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/04\/GujHC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":222807,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/04\/del-hc-s-138-ni-act-epf-society-facilitating-purchase-of-houses-on-behalf-of-its-members-held-not-liable-for-dishonour-of-cheques-issued-to-the-builder\/","url_meta":{"origin":218651,"position":5},"title":"Del HC | S. 138 NI Act; EPF society facilitating purchase of houses on behalf of its members held not liable for dishonour of cheques issued to the builder","author":"Bhumika Indulia","date":"December 4, 2019","format":false,"excerpt":"Delhi High Court:\u00a0Suresh Kumar Kait, J., allowed a petition wherein directions were sought for quashing the complaint case filed against the petitioner under Section 138\u00a0(dishonour of cheque)\u00a0read with Sections 141\u00a0(offences by companies)\u00a0and 142\u00a0(cognizance of offence)\u00a0of the Negotiable Instruments Act, 1881. The petitioner- Society, Employees Welfare Fund of the employees of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/218651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=218651"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/218651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/74381"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=218651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=218651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=218651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}