Sankar Padam Thapa vs. Vijaykumar Dineshchandra Agarwal [2025 INSC 1210]

Complaint under the NI Act is maintainable against trustees without trust being made as an accused

RELEVANT PARAGRAPH

2. The question for consideration in the instant appeal is as to whether in the absence of a Trust being made an accused in a complaint under the Negotiable Instruments Act, 1881 (hereinafter referred to as the ‘NI Act’), when a Cheque has been issued on behalf of a Trust, the said complaint would be maintainable against the Chairman/a Trustee of the said Trust?

 

29. Hence, the question posed is answered in the affirmative. When a cause of action arises due to an alleged dishonour of cheque and a complaint is initiated under the NI Act, the same is maintainable against the Trustee who has signed the cheque, without the requirement to array the Trust also as an accused.

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