22 Aug 2026 11:54 AM
Supreme Court
Supreme Court

Dishonour of Cheque -- Director Signing Board Resolutions -- Not liable absent specific allegation of responsibility for conduct of business

Negotiable Instruments Act, 1881, Ss.138, 141 -- Dishonour of Cheque -- Director Signing Board Resolutions -- Signing of Board Resolutions by a Director does not mean that every member of the Board is aware of all decisions taken in the everyday running of the business. Such a Director is not liable for the offence under these provisions in the absence of a direct allegation that the accused was in charge of and responsible for the conduct of business of the company.

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