# In the matter of Rajesh Viren Shah vs. Redington (India) Limited > SC judgment dated 2024-02-14. Citation: TCN-2024-SC-00095. The case involves criminal appeals arising out of Special Leave Petitions (Crl.) No.6905 and… - **Court:** SC - **Order date:** 14 Feb 2024 - **Citation:** TCN-2024-SC-00095 - **Category:** IBC - **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/rajesh-viren-shah-vs-redington-de184394 ## Summary ### Background The case involves criminal appeals arising out of Special Leave Petitions (Crl.) No.6905 and No.7050 of 2022. The appellants, former directors of the respondent company, were accused in a complaint filed under Section 138 of the Negotiable Instruments Act, 1881, concerning dishonored cheques. The appellants had resigned from their directorships prior to the issuance of the cheques. The complainant-respondent initiated action after the cheques were dishonored due to insufficient funds. The appellants sought to quash the proceedings, which was dismissed by the High Court. The Supreme Court is now considering whether a director who has resigned can be held liable for negotiable instruments failing realization. ## Facts Rajesh Viren Shah and Sanjay Babulal Bhutada, the appellants, were directors of Redington (India) Limited, the respondent company. They resigned from their directorships on December 9, 2013, and March 12, 2014, respectively. Form 32, documenting their resignations, was accepted on December 9, 2013, and March 20, 2014. Subsequently, a complaint was filed against them under Section 138 of the Negotiable Instruments Act, 1881, concerning three dishonored cheques dated March 22, 2014. The cheques, bearing numbers 002535, 002777, and 002791, were for amounts of Rs.7,10,085/-, Rs.1,85,09,054/-, and Rs.10,00,000/-, respectively. The complaint was filed by the respondent company against M/s MIEL e-Security Private Limited and its directors, including Mr. Narayanan Kutty Nair. … ## Issues and analysis ### Issue 1: Whether a Director who has resigned from such position and which fact stands recorded in the books … **Ratio:** A director who has resigned prior to the issuance of a cheque cannot be held liable under … **Reasoning:** The court reasoned that the appellants had severed their ties with the respondent company … **Interpretation:** Section 138 of the Negotiable Instruments Act requires that the person held … **Application:** In this case, the appellants had resigned and their resignations were … ## Parties - **Judges:** Sanjay…; B.R. G… - **Appellants:** RAJESH VIRE… - **Respondents:** REDINGTON (INDIA)… ## Timeline - **2013-12-09 — Resignation of…**: Rajesh Viren Shah resigned from the… - **2014-03-12 — Resignation of…**: Sanjay Babulal Bhutada resigned from the… --- This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/rajesh-viren-shah-vs-redington-de184394