Section 138 NI Act: Authorised Signatory Who Signed Cheque on NGO's Behalf Deemed a 'Drawer' and Liable for Dishonour: Supreme Court
The Supreme Court of India, in a significant ruling, held that when a company or organisation authorises an individual to sign and issue cheques on its behalf, such person can be treated as a “drawer” of the cheque and can be held liable under Section 138 of the Negotiable Instruments Act, 1881 in case of dishonour. The judgment was delivered by a bench of Justice Prashant Kumar Mishra and Justice…
