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2010 (7) TMI 280 - SC - Companies LawWhether a complaint under section 138 of the 1881 Act would be maintainable against a person who was not the drawer of the cheque from an account maintained by him, which ultimately came to be dishonoured on presentation? Held that:- Appeal allowed. In the instant case, the cheque which had been dishonoured may have been issued by the respondent No. 11 for discharging the dues of the appellant No. 1-company and its directors to the respondent No. 1 company and the respondent. Company may have a good case against the appellant No. 1-company for recovery of its dues before other fora, but it would not be sufficient to attract the provisions of section 138 of the 1881 Act. The appellant-company and its directors cannot be made liable under section 138 of the 1881 Act for a default committed by the respondent No. 11.
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