RAJESH VIREN SHAH vs REDINGTON (INDIA) LIMITED

The Supreme Court addressed the liability of directors who have resigned from their positions concerning dishonored cheques under Section 138 of the Negotiable Instruments Act, 1881. It held that under Section 141 of the N.I. Act, a director can only be held liable if they were responsible for the company's affairs at the time of the offense, and if the act was done with their connivance or consent. The Court dismissed the appeals of the resigned directors, affirming that they could not be held liable for the cheques issued after their resignation as their names were no longer on record as directors.