Tagged “drawer-liability”

Bijoy Kumar Moni v. Paresh Manna (2024): only the drawer of a cheque can be prosecuted under Section 138

The Supreme Court held that liability under Section 138 of the Negotiable Instruments Act attaches only to the drawer who maintains the account on which the cheque is drawn. A director who signs a cheque on his company's account does not become the drawer in his personal capacity, and cannot be prosecuted unless the company itself is arraigned.