A.K.SINGHANIA vs GUJARAT STATE FERTILIZER CO.LTD.

The Supreme Court addressed the liability of directors under Section 138 of the Negotiable Instruments Act, emphasizing that all directors involved in the management of a company can be held accountable for the company's failure to honor a cheque. The Court clarified that mere designation as a director does not exempt one from liability; active involvement in the company's affairs is crucial. The appeals were dismissed, affirming the lower court's decisions against A.K. Singhania and Vikram Prakash, holding them liable for the offences alleged.