Directors' Resignations Does Not Automatically Absolve Them Of Legal Responsibility For Dishonour Of Cheque Signed By Them: Jharkhand High Court
Live LawIn a recent judgment, the Jharkhand High Court ruled against quashing criminal proceedings in a cheque dishonour case, emphasizing that directors' resignations from a company do not automatically absolve them of legal responsibilities particularly when the cheque was signed by them. Advocate AK Kashyap, the senior counsel representing the petitioners in both cases, emphasized that the petitioner, Pramod Shankar Dayal, had officially resigned from his position as Director at M/s Rudra Steel Private Limited, effective October 26, 2003, and this resignation had been duly accepted and recorded in Form-32 by the Registrar of Companies. The court, after considering the presented evidence and the fact that the petitioner, Pramod Shankar Dayal, resigned after the cheque was presented, determined that this case did not warrant quashing the proceedings under Section 482 of Cr.P.C. Furthermore, the Court observed that the petitioner Krishna Singh had not filed the necessary Form 32 under the Companies Act; instead, he relied on his resignation letter dated 04.10.2006, and since both petitioners were signatories of the cheque and their situations were identical, the court concluded that the criminal proceedings against them would not be halted.
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