R M KAIMAL Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THE Advocate for the Applicant submitted that the Applicant was merely a signatory to the cheques in his capacity as the Assistant Company Secretary of Accused No. 1. He pointed out that while passing the order of conviction under section 138 of the Negotiable Instruments Act, 1881, the Applicant has been directed to pay compensation of Rs. 50 lakhs though the alleged liability was of the accused No. 1 which is a limited company. Arguable questions are raised. Hence Rule returnable early.

(2.) THE Applicant shall be enlarged on bail in the sum of Rs. 10,000/- with one or two sureties in the like amount. Rule on interim relief is made returnable on 10th November 2006. Till 15th November 2006 order directing payment of compensation by the Applicant will remain suspended. The explanation given by the Section Officer is accepted.