The Supreme Court has said that all directors involved in the day-to-day running of a company can be made liable for a bounced cheque, but not one who resigned before the cheque was issued. The top court said this while dealing with a case filed by a private company that had lent money to another. Gunmala Sales Pvt Ltd had filed cheque-bouncing cases under the Negotiable Instruments Act against Navkar Infra Projects Pvt Ltd and four of its directors. The Calcutta High Court quashed proceedings initiated by a magistrate on grounds that the complaint was based on a mere assertion that the directors were responsible for the day-to-day business of the accused company when the offence was committed.

Source - http://economictimes.indiatimes.com