Sole Proprietor 'Alone' Liable U/S 138 NI Act For Dishonour Of Cheques Issued To Repay Debt: Delhi High Court

In a cheque bouncing case, the Delhi High Court ruled that only the sole proprietor is liable for cheques issued for loan repayment. The court rejected the argument that the proprietor's family members or business partners could be held liable. The judgment clarifies that in cases of sole proprietorship, the individual owner bears full responsibility for financial obligations and dishonored cheques. The ruling reinforces personal liability in business dealings involving sole proprietors.