Section 143A NI Act, Company's Authorized Signatory Not 'Drawer' Of Cheque, Can't Be Directed To Pay Interim Compensation: Supreme Court

In a landmark judgment dated July 24, 2024, the Supreme Court of India upheld the strict interpretation of the term "drawer" under the Negotiable Instruments Act, 1881 (NI Act), specifically concerning the liability for interim compensation in cheque dishonour cases. The case, SLP(Crl.) Nos. 8849-8850 of 2023, involved significant legal questions about the vicarious liability of company directors and other officers. Case Details and Background The appellants in this case,…