Dcm Financial Services Ltd vs J.N.Sareen & Anr

The Supreme Court addressed the applicability of Section 138 of the Negotiable Instruments Act, 1881 concerning post-dated cheques. It held that a director who has resigned prior to the date of the cheque cannot be held liable under Section 141 for dishonor of the cheque, as there was no allegation of being a signatory or authorized to issue the cheque. The Court upheld the discharge of the respondent by the Additional Sessions Judge, affirming that liability under the Act requires current directorship at the time of the cheque's dishonor.