Supreme Court of India · 2008-05-08
Aneeta Hada vs M/S Godfather Travels & Tours Pvt.Ltd
- Citation / case number
- AIR 2008 SC (SUPP) 1849
- Court
- Supreme Court of India
- Petitioner
- Aneeta Hada
- Respondent
- M/S Godfather Travels & Tours Pvt.Ltd
- Author
- S.B. Sinha
- Bench
- S.B. Sinha, V.S. Sirpurkar
Judgment text excerpt
The Supreme Court held that under Section 138 of the Negotiable Instruments Act, 1881, an authorized signatory of a company cannot be held liable for dishonor of a cheque unless the company itself is made an accused party. The Court clarified that the cheque must be issued for the discharge of a debt or liability of the drawer, and the authorized signatory does not become the drawer merely by signing the cheque. The High Court's refusal to quash the proceedings against the appellant was upheld, emphasizing that the legal presumption under Section 139 does not extend liability to individuals not directly responsible for the debt.