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Tuesday, February 15, 2011

Director of firm not be dragged to court if not directly responsible

A director of a company should not be dragged to a criminal court when documents prove he was not responsible for issuing cheques which were dishonoured, the SC stated last week. The Calcutta high court had asked a former director of Rifa Healthcare (India) who had resigned from the company to stand trial for the issuance of 18 cheques. He showed from documents he had left the company and therefore the case against him should be quashed. But the high court insisted it was his duty to show the trial court he had indeed quit the company. Therefore, he should face the trial first. He appealed to the SC against the order. The SC set aside the ruling in the case, Harshendra Kumar vs Rebatilata Kole, stating it was evident from the records of the company and the registrar of the companies he had left the firm at the time of issuing the cheques.

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