Supreme Court of India · 2019-01-17
HIMANSHU vs B. SHIVAMURTHY
- Citation / case number
- SC 2006/6301
- Court
- Supreme Court of India
- Petitioner
- HIMANSHU
- Respondent
- B. SHIVAMURTHY
- Author
- HON'BLE THE CHIEF JUSTICE
- Bench
- HON'BLE MR. JUSTICE HEMANT GUPTA HON'BLE THE CHIEF JUSTICE
Judgment text excerpt
The Supreme Court held that under Section 138 of the Negotiable Instruments Act, 1881, a cheque issued by a director of a company does not render the director personally liable unless the company is also made an accused in the complaint. The Court emphasized that the complaint should have been instituted against the company and its directors, as the cheque was issued in the capacity of the director representing the company. The appeal was allowed, and the High Court's order was set aside, reinforcing the necessity of naming the company in such cases.