Authorised signatory cannot be directed to pay interim compensation for dishonour of cheque: Bombay High Court

The Court ruled that such authorised signatory is not a “drawer” of the cheque as per the Negotiable Instruments Act, and hence cannot be directed to pay interim compensation to the complainant.
Cheque Bouncing
Cheque Bouncing

The Bombay High Court recently held that a person authorised by a company to sign cheques on its behalf will not be considered as the “drawer of the cheque” for the purpose of interim compensation under the Negotiable Instruments (NI) Act. [Lyka Labs Limited & Anr v. State of Maharashtra & Anr]

Want to read the full story?

We’re glad you’re enjoying this story. Subscribe to any of our plans to continue reading the story.

Already have an account? Sign In
Bar and Bench - Indian Legal news