Limitation under Negotiable Instruments Act, 1881 : An Important Decision

Limitation under Negotiable Instruments Act, 1881 Explained in an Important Decision

"A plain reading of Section 141 of NI Act, 1881 reveals that there is no requirement of serving each Director separately. The notice envisaged under Section 138 of NI Act, 1881 is required to be given to the drawer of the cheque i.e. the accused company in the present case to make good the sum payable under the cheque. A company being a juristic entity is run by living persons who are in charge of its affairs and who guide the actions of that Company and that if such juristic entity is guilty, those who were so responsible for its affairs and who guided actions of such juristic entity must be held responsible and ought to be proceeded against. The opportunity to the „drawer‟ company is considered good enough for those who are in charge of the affairs of such Company."

"Limitation Act, 1963 does not apply to proceedings initiated under NI Act, 1881"

Refer M/S GLAZEBROOKE TRADING PRIVATE LIMITED  v M/S ORBIS TRUSTEESHIP SERVICES PRIVATE LIMITED & ANR [2024] GCtR 3360 (Delhi).