DCM FINANCIAL SERVICES LTD. vs J.N.SAREEN

The Supreme Court addressed the implications of a post-dated cheque under Section 138 of the Negotiable Instruments Act, 1881, ruling that a director of a company cannot be held liable for a cheque issued after their resignation unless they were a signatory or authorized to issue the cheque. The Court upheld the discharge of the first respondent, emphasizing that the complaint did not allege any direct involvement of the director in the cheque issuance post-resignation. The judgment clarifies the liability of directors in cheque dishonor cases, reinforcing the necessity of direct involvement for prosecution under Section 141 of the Act.