Vishnoo Mittal vs M/S. Shakti Trading Company

The Supreme Court examined the validity of proceedings under Section 138 of the Negotiable Instruments Act, initiated against a corporate director for dishonoured cheques issued by the company. The court considered whether the director could be held liable personally, given the cheques were issued in the company's name and the proceedings were initiated against him in his capacity as director. The court upheld the principle that criminal liability under Section 138 primarily attaches to the drawer of the cheque, typically the company, unless personal liability is established. The appeal was dismissed, affirming the legal position that directors are not automatically liable unless they are the signatories or have personally committed the offence.