S. 141 NI Act | Resigned Director Not Liable For Cheque Issued By Company After His Resignation : Supreme Court

The Supreme Court ruled that a resigned director is not liable for a cheque issued by the company after their resignation, under Section 141 of the Negotiable Instruments Act (NI Act). In this case, the director had resigned before the cheque was issued, and the Court held that they could not be held responsible for dishonor under the relevant provisions of the NI Act. The ruling clarified the liability of former directors, emphasizing that their responsibility ceases once they have resigned from the company, ensuring protection for individuals against post-resignation financial liabilities.