Negotiable Instruments Act, 1881 – Section 138,141, 148 – Merely because an officer of a company concerned is the authorised signatory of the cheque concerned by itself will not make such an officer ‘drawer of the cheque’ under Section 148, NI Act, so as to empower the Appellate Court, in an appeal against conviction for an offence under Section 138, NI Act, to direct to deposit compensation of any sum under Section 148(1), of the NI Act. (Para 16)
Negotiable Instruments Act, 1881 – Section 148 – An Appellate Court in an appeal against conviction under Section 138, NI Act, could not place a condition to deposit an amount invoking the power under Section 148(1), NI Act, mechanically without considering whether the case falls within exceptional circumstances. (Para 17)
Negotiable Instruments Act, 1881 – Section 138,141, 143A -The primary liability for an offence under Section 138 lies with the company and the company’s management is vicariously liable only under specific conditions provided in Section 141 and for the purpose of Section 143A of the NI Act and a signatory merely authorised to sign on behalf of the company would not become the ‘drawer’ of the cheque and, therefore, could not be directed to pay interim compensation under Section 143A. (Para 13)