SLP(Crl) No. 003999 - / 2020

Under Section 138 of the Negotiable Instruments Act, a person cannot be held vicariously liable as a Director of a company for dishonour of a cheque unless statutory notice was duly served upon them and their role at the relevant time is established — mere directorship at the time of dishonour, without being a signatory, raises prima facie grounds for discharge. As analysed on casestatus.in, the petition was ultimately dismissed as withdrawn, leaving the interim stay vacated without a final ruling on merits.