Signatories/directors cannot escape penal liability under Section 138 of NI Act due to dissolution of Company: SC

Ajay Kumar Radheshyam Goenka Vs Tourism Finance Corporation Of India Ltd (Supreme Court) SC held that where the proceedings under Section 138 of the NI Act had already commenced with the Magistrate taking cognizance upon the complaint and during the pendency, the company gets dissolved, the signatories/directors cannot escape from their penal liability under Section 138 of the NI Act by citing its dissolution. What is dissolved, is only the company, not the per­sonal penal liability of the accused covered under Section 141 of the NI Act. Hon’ble SC held as under (a) After passing of the...