National Small Industries Corp.Ltd vs Harmeet Singh Paintal & Anr

The Supreme Court held that under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881, a director of a company can only be held liable if specific averments are made regarding their role in the issuance of dishonoured cheques. The Court found that the High Court's quashing of the summoning orders was justified due to the lack of specific allegations against the directors, thereby upholding the High Court's decision. The appeals by the National Small Industries Corporation Limited and DCM Financial Services Ltd. were dismissed, affirming the High Court's rulings.