25 Jun 2026 12:25 PM
Supreme Court
Supreme Court

Dishonour of Cheque -- Authorised Signatory as Drawer -- Liability under Section 138 attracts even where signatory holds office in NGO

Negotiable Instruments Act, 1881, S.138 -- Dishonour of Cheque -- Authorised Signatory as Drawer -- An individual authorised by an organisation to sign and issue cheques and make payments on its behalf qualifies as a "drawer" under Section 138. Mere designation as an office bearer does not shield such a person from liability where the MoU specifically vests payment responsibility in that individual alone.

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