GM ACQUITTED FOR BOUNCED CHEQUES

The Supreme Court set aside the conviction of the general manager of JK Utility division of JK Synthetics Ltd. for issuing cheques which were dishonored by Bank of Rajasthan. The courts below, including the Madhya Pradesh high court, had affirmed his conviction under Section 138 of the Negotiable Instruments Act. On appeal, Ramraj singh vs. State of MP, he argued that he was not in charge and responsible for the conduct of the business of the company and therefore, under Section 141 of the same Act, he could not be held liable for the offence. The finance manager who handed over the cheques is absconding. The SC set aside the conviction, accepting the contention of the GM that he was not vicariously liable for the offence.