Drawer of Cheque – Lawcutor

Supreme Court Holds That Authorized Signatory Made Front Face of Entity Becomes Drawer of Cheque Under Section 138 NI Act

7 Jun 20267 Jun 2026

The Supreme Court has observed that when the company authorizes a particular individual to sign, issue cheques on the company's behalf, including the responsibility of making a payment, then such…

Supreme Court Clarifies Liability of Authorized Signatory Under Negotiable Instruments Act

In a significant judgment, the Supreme Court clarified that an official signatory of a company cannot be deemed the "drawer of a cheque" and thus cannot be held liable to…