Liability of Resigned Directors in Negotiable Instruments: Supreme Court Verdict

Rajesh Viren Shah Vs Redington (India) Limited (Supreme Court of India) Introduction: The Supreme Court recently deliberated on a crucial question: Can directors who have resigned still be held accountable for negotiable instruments that fail to materialize? In two separate cases, the Court examined the liability of directors who had resigned from their positions but were implicated in complaints under Section 138 of the Negotiable Instruments Act, 1881. Detailed Analysis: The crux of the matter revolved around Section 141 of the Negotiable Instruments Act, which holds individuals responsible ...