Lalit Kumar Sharma And Anr vs State Of U.P. & Anr

The Supreme Court addressed the applicability of Section 138 of the Negotiable Instruments Act, 1881, in a case involving dishonored cheques issued by a company. The Court held that the directors who were not signatories to the cheques could not be held liable under Section 138, as they did not have the requisite authority or involvement in the issuance of the cheques. The appeal was allowed, and the High Court's order summoning the appellants was set aside, establishing that mere directorship does not entail liability for dishonored cheques unless specific conditions are met.