Section 148 of NI Act – suspension of sentence – authorised signatory of company cheque
Section 148 of the NI Act – Whether the authorized signatory of Company cheque is liable to pay fine or compensation
The complaint was filed against M/s. Gee Pee Infotech Private Ltd and the appellant as the Authorised signatory /Director of the Company for the offence under Section 138 of the Negotiable Instruments Act, 1881.
In the said complaint, the trial Court found the appellant guilty, was convicted and sentenced to pay fine of Rs.40 lakhs vide judgment dated 30.9.2023.
In the criminal appeals, the sentence was suspended on deposit of 20% of the fine / compensation in each appeal. This was confirmed in the High Court.
HELD that a signatory merely authorized to sign cheque of the cheque does not become “drawer” and therefore, it is certainly an exceptional circumstance to exempt the appellant to deposit the amount under Section 148(1) of the Cheque. The Appellate Court is, therefore, not empowered in an appeal against conviction for section 138 offence, to direct the compensation of any sum under section 148(1).
Judgment dated 21.10.2024 of the Supreme Court of India in Criminal Appeal No….. of 2024 (SLP (Criminal) No.2696 of 2024) of Bijay Agarwal Vs. M/s. Medilines with connected matter
