Check signed while being a director of the company, bounced after resignation, still he would be responsible – High Court

Ranchi:  Jharkhand High Court delivered its verdict on the petition filed against quashing of criminal proceedings in a check bounce case.

In its judgment, the High Court emphasized that resignation from the post of director of a company does not automatically absolve one of legal responsibilities, especially when the check is signed by him.

In fact, two criminal writs were filed in the High Court against the cancellation of criminal proceedings against the directors of Rudra Steel Private Limited, in which it was said that Pramod Shankar Dayal and Krishna Singh had issued a check of Rs 11 lakh 90 thousand, which was insufficient. Bounced due to funds.

After this, legal notices were sent to both of them, but they did not respond. Both were signatories to the petitioner’s checks and their circumstances were similar. Therefore the court concluded that criminal proceedings against him would not be stayed. This case was heard in the court of High Court judge Justice Sanjay Kumar Dwivedi.

Senior advocates AK Kashyap and Praveen Shankar Dayal presented the case on behalf of the applicants. Special Public Prosecutor Priya Shrestha presented the case on behalf of the state government.

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