Author: Anshika Singh, Student at Amity University, Lucknow
Co-Author: Abhinav Singh, Student at Amity University, Lucknow
PROVISIONS INVOLVED
- Section 141 of Negotiable Act. It states the offences by companies. It deals with dishonoring of cheques drawn by the company.
- Section 138 of Negotiable Instrument Act. No individual or person shall be held liable if that individual is able to prove the fact that the offence was committed without his knowledge on his part and all the reasonable and necessary steps were taken by him that a prudent man would have taken to prevent the happening of the offence.
- Section 168 of Companies Act 2013 provides the director who has resigned shall be liable even after his resignation for the offences which occurred during his tenure.
