The Karnataka High Court ruled that prosecution under Section 138 of the Negotiable Instruments Act cannot continue against a former director when a cheque was issued after the company’s dissolution. The Court held that a dissolved company lacks legal existence, making such cheques legally unenforceable.
The Delhi High Court rejected actor Rajpal Yadav’s final plea to avoid imprisonment in a cheque bounce case, refusing to hear him unless he surrendered first. Following the court’s order, Yadav told the bench he would surrender before Tihar Jail authorities later today.
The Delhi High Court held that a director who is an admitted signatory to a dishonoured cheque cannot seek quashing of NI Act proceedings by merely claiming resignation, especially when the timing and genuineness of resignation are disputed facts.
