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may 2008

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.

Aneeta Hada vs M/S Godfather Travels & Tours Pvt.Ltd · Niyam