K. RANGANAYAKULU Vs. STATE OF TELANGANA

JUDGEMENT

(1.) Leave granted.

(2.) Appellant stands convicted by the High Court for committing offence under Sec. 138 of the Negotiable Instruments Act, 1881 (NI Act) and has been sentenced to undergo rigorous imprisonment for one year and fine of Rs.1,50,00,000.00 (Rupees One crore fifty lakhs only), in default of payment of fine, to undergo default sentence of additional imprisonment of one year. The High Court has also directed to cause the appearance of the appellant and send him to prison to serve the remaining period of sentence.

(3.) It is argued by Mr. Santosh Kumar, learned senior counsel appearing for the appellant that the appellant not being the drawer of the cheque, cannot be convicted for the reason that an authorized signatory is merely authorized to sign on behalf of the company and does not become the drawer. Therefore, since penal statutes have to be interpreted strictly particularly in determining vicarious liability, the appellant cannot be held guilty for committing offence under Sec. 138 of the NI Act. Learned senior counsel would refer to the law laid down by this Court in (2024) 7 SCR 1211:2024 INSC 551.