HC ruled in favor of petitioner, quashing criminal proceedings ...

Court Upholds Director's Resignation as Valid Defense Against Cheque Dishonor Case Under NI Act Sections 138/141

January 31, 2025

Case Laws Indian Laws HC

HC ruled in favor of petitioner, quashing criminal proceedings under Negotiable Instruments Act Sections 138/141. Director's unilateral resignation was deemed valid from date of company's receipt, despite non-filing of Form 32 or ROC notification. Court emphasized that filing statutory forms is company secretary's duty, not director's responsibility. Resignation's effectiveness under Companies Act Section 168(2) occurs upon company's receipt or specified date, whichever later. Petitioner's March 14, 2020 resignation (delivered March 16, 2020) preceded dishonored cheque, eliminating vicarious liability. Court held criminal proceedings would constitute judicial process abuse, noting criminal law cannot be tool for settling personal disputes.

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HC ruled in favor of petitioner, quashing criminal proceedings ...

Court Upholds Director's Resignation as Valid Defense Against Cheque Dishonor Case Under NI Act Sections 138/141

January 31, 2025

Case Laws Indian Laws HC

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