S. 148 NI Act | Signatory Of Cheque Issued By Company Can't Be Directed To Pay Compensation For Suspension Of Sentence : Supreme Court

The Supreme Court ruled that under Section 148 of the Negotiable Instruments Act (NI Act), the signatory of a cheque issued by a company cannot be directed to pay compensation for suspension of sentence. The case dealt with an appeal concerning the suspension of sentence in a cheque bounce case. The Court emphasized that liability for dishonor of a cheque lies with the company, not the individual signatory, unless there is evidence of personal wrongdoing. This decision protects individuals from being unfairly held liable for corporate liabilities under the NI Act