Director’s Liability in case of Cheque Dishonor

Abstract

Since directors' accountability is crucial to preserving the integrity of the Indian financial system, the issue of directors liability in cases of cheque dishonor is crucial. The topic of directors culpability in the event of a dishonored cheque in India is examined in this research paper. Even while there are legal measures in place to hold directors accountable, there are a lot of situations in which they manage to avoid responsibility. This calls into question how well the current legal system works to make sure directors are held responsible for their activities. The purpose of this study is to find out how much directors in India are held accountable for cheque dishonour situations and to pinpoint any legal loopholes that might be contributing to the issue. Data are
gathered for the study using a mixed-methods methodology, which includes a thorough assessment of the literature and a SC judgment of cheque dishonor. The results show that victims have difficulty obtaining legal remedies against directors and that the current legal system is inadequate for holding directors responsible for cheque dishonor. In addition to serving as a resource for legislators, solicitors and victims of cheque dishonor, this study attempts to add to the body of knowledge regarding directors' culpability in Indian cases involving cheque dishonor.