Saturday, March 7, 2026
Latest:
2024December 2024LatestLegalSupreme Court

Section 148 of NI Act – suspension of sentence – authorised signatory of company cheque

legaldeli

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

You May Also Like

Senior Citizens Act 2007 – Section 23 – Cancellation of Gift Deed – Consideration of ownership of property is important – Condition of gift for maintenance can be proved by pleadings and evidence

legaldeli

Open Distance Learning and Online Programs – UGC approval

legaldeli

ITAT Mumbai – Redevelopment & Income Tax – Multiple Floors in new Building Still One House for Section 54 Exemption

legaldeli

Leave a Reply

Your email address will not be published. Required fields are marked *

I HAVE READ THE DISCLAIMER AND AGREE TO IT.

User Acknowledgement

By proceeding further and clicking on the "AGREE" button herein below, I acknowledge that I of my own accord wish to know more about LegalDeli for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from LegalDeli or any of its members to create an Attorney-Client relationship through this knowledge site. I further acknowledge having read and understood the Disclaimer below.

Disclaimer
About: This knowledge-site (www.LegalDeli.in) is owned and operated by LegalDeli (“NDA”), and is a resource for your informational and educational purposes only.

No Warranty: NDA does not warrant that any content or information contained on this knowledge-site is accurate, correct, complete or up-to-date, and hereby disclaims any and all liability to any person for any actual or threatened loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or otherwise. NDA assumes no liability for the interpretation and/or use of the content and/or information contained on this knowledge-site, nor does it offer any warranty of any kind, either expressed or implied in relation to such content or information.

Third-Party Links: NDA does not intend that links / URLs contained on this knowledge-site re-directing users to third party websites be considered as referrals to, endorsements of, or affiliations with any such third party website operators. NDA is not responsible for, and makes no representations or warranties, express or implied, about the content or information contained on such third party websites to which links may be provided on this knowledge-site.

No Legal Advice: By clicking ‘I agree’ and proceeding further, you acknowledge, represent and undertake that you on your own accord wish to know more about NDA, its capabilities and research content and information contained on the knowledge-site, for your own knowledge and personal use. The content and information contained on this knowledge-site should not be construed as nor relied upon as legal advice. You as a reader or recipient of content or information contained in this knowledge-site should not act, nor refrain from acting, based upon any or all of such content or information, but should always seek the advice of competent legal counsel licensed to practice the relevant law in the appropriate jurisdiction.

No Attorney-Client Relationship: This knowledge-site is not intended to be and you should not consider the content or information contained therein to be an advertisement, solicitation, inducement or invitation for an Attorney-Client relationship. Transmission, receipt or use of this knowledge-site, including content and information contained therein, does not constitute nor create an Attorney-Client relationship between NDA and you.

I Agree