Who is liable when cheque is issued on personal account for discharging debt of Company?

G S Rao | Last updated: 14 December 2015

Save Share

Introduction: Recently two judge bench of Supreme court delivered an interesting judgment on offence underSection 138 of Negotiable Instruments, Act,1881 ( referred as NI, Act) in the case Mainuddin Abdul Sattar Shaik Vs Vijay D Salvi,(Reported in AIR2015SC2579:MANU/SC/0720/2015) In this caseManaging director of a company, was made liable for dishonour of cheque issued by him on his personal account for a legally enforceable debt of the company. It may sound very strange but decision is based

Daily Limit Reached

You have reached your daily limit of 2 Free Articles

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Articles Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience.

26572 Views 4 Likes Comment Share Corporate Law Report

About the Author

G S Rao

Deputy General Manager

I am heading Secretarial and Legal department and deisgnated as Deputy General Manager Cum Registrar.

View Articles

Comments :

Who is liable when cheque is issued on personal account for discharging debt of Company?

You have reached your daily limit of 2 Free Articles

Why Upgrade to CCI PRO?

G S Rao

Related Articles

Popular Articles

Trending Online Classes

Browse by Category

Latest Job Openings

CA Articles

Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Industrial Trainee

Chartered Accountant

Chartered Accountant

Articles

Chartered Accountant Articles

CA Article Assistant