Director not responsible for cheque issued & Dishonoured post his retirement

Alibaba Nabibasha Vs Small farmers agri-busines Consortium & ORS (Delhi High Court)

The Petitioner ceased to be the director of the respondent No. 2 with effect from 27^th October 2010. The resignation of the petitioner was also notified to MCA.

The cheques, totaling to INR 45 Lakhs, were issued on 31^st December 2018 by respondent No. 2. The respective cheques were dishonored, due to insufficient funds, vide memo dated 11^th January 2019.

Held –

Person retired as the director of the company cannot be held liable for the day-to-day acts of the company. Provisions of section 141 of the NI Act not applicable to the director who was retired before the cheques were issued and dishonored.

Please become a Premium member. If you are already a Premium member, login here to access the full content.