Cheque Bounce — Offences by Companies

If a company issues a cheque that bounces, the directors and officers in charge of the company can be held personally liable. This means the complainant can file a case against the company and its responsible directors both.

• A company issues a cheque to a supplier that bounces. The supplier can file a case against both the company and its managing director under Sections 138 and 141 of NI Act.