The High Court of Karnataka has quashed criminal proceedings initiated under Section 138 of the Negotiable Instruments Act, 1881 (the Act) against a former Director of a company, holding that he cannot be held liable for cheques issued during a period when he was not associated with the company. Justice M. Nagaprasanna allowed the criminal
Section 138 NI Act | Director Cannot Be Held Liable for Cheques Issued During ‘Vacuum’ in Tenure: Karnataka HC
