Status of directorship of retired director who issued fraudulent cheque have to be tested at trial

Last updated: 16 August 2021

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Quick Summary

The Delhi High Court has ruled that a trial is necessary to determine the liability of a former company director concerning post-dated cheques that were returned unpaid. The court found that questions regarding the director's resignation date, the company's financial standing, and potential re-appointment liabilities are complex issues that can only be properly addressed during a full trial. Consequently, the magistrate's decision to reject the director's plea for discharge and proceed to trial was upheld.

Court :
Delhi High Court

Brief :
In Maj. Surendra Kumar Hooda (retd.) V. Kapil Gupta the Hon'ble Delhi High Court held that, the correctness of the allegations against the Director who has already resigned on the date of presentation of postdated cheques issued by the Director of the Company for exercising Buy Back Option which were returned unpaid have to be tested at trial.

Citation :
CRL.M.C. 1779/2020 & CRL.M.A.12423/2020, CRL.M.C. 1782/2020 & CRL.M.A.12458/2020, CRL.M.C. 1783/2020 & CRL.M.A. 12460/2020, CRL.M.C. 1784/2020 & CRL.M.A. 12462/2020 decided on February 08, 2021

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