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WHO SHOULD THE HONBLE COURT ISSUE SUMMON TO INCASE OF PVT LTD CO
09-Dec-2023 (In Cheque Bounce Law)
Hello All, In my NI 138 case against a pvt ltd company, I have been asked by judge to prove as to which of the active directors has signed the cheque which bounced. Now the only way to find name and signature together is either on a PAN Card or on a signed balance sheet (as I have been told by my CA). I do not have access to PAN Cards of any directors. I have also tried to procure certified copy of some resolution (by paying fee and stamp duty on MCA Web site) passed by Board of company in 2019. My question is, should the court not issue summons to all directors or seek the information directly from the company as to who is the person who has signed the cheque. As far as I know, any person (non-directorial personnel) authorized by company can sign the cheque. Does that mean that the liability is limited to the signatory on cheque and not on entire company?
Hi,
For impleading a director in a section 138 matter, the complainant should make an avernment in the complaint that the directors concerned are responsible for the day to day affairs of the company. In absence of the same the court will not take cognisance and issue summons. The summons can be issued against the signatory of the cheque and the directors concerned who at the time of the occurence of the offense are in direct charge of day to day affairs of the company.
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Adv. Anubhav Kathuria
Delhi | 1000+ Answers
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The liability is limited to th signatory or the personnel who was at the time when the cheque got dishonoured was managing the affairs of the company or was actively managing the affairs of the company. Therefore, MCA website as to the active DIN would give the sufficient idea.
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Adv. Yuganshu Sharma
Delhi | 700+ Answers
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Sir,
The summons are issued against the person who has signed the cheque, company and all the directors who are responsible for the affairs of the company.
The judge can't ask you to prove the signature of any director. If he is the director, summons will be issued against him. However, he might get the proceedings quashed if he was not responsible for the affairs of the company.
The director can also be made liable, however, one has to show in the complaint that director was in charge of, and responsible for, the conduct of the company's business at the time when the cheque got dishonored
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Adv. Bharat Singh
Delhi | 25+ Answers
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