M.A.A.ANNAMALAI vs STATE OF KARNATAKA

The Supreme Court held that the appellant, having resigned as a Director of R.P.S. Benefit Fund Ltd. effective 27.12.1997, could not be held liable for the alleged offences under Section 420 IPC and the Money Circulation and Banning Act, 1978, which occurred after his resignation. The Court emphasized that the material ingredients of cheating were not established against the appellant, and thus the proceedings against him were quashed. The judgment of the Karnataka High Court was upheld, affirming that the appellant was not responsible for the company's actions post-resignation.