Cheque Bounce - Liability of Directors

1. There is a presumption under law that a cheque is isssued in discharge of a debt or liability and this presumption has to be rebutted by the person issuing a cheque. 

2. Law enjoins responsibility of running a company on all the directors collectively and if a director takes the stand that he has no responsibility, the onus to rebut legal presumption is on him. 

3. When the has made BoD responsible for the conduct of the business as a body of the company, each and every Director has to be considered in-charge of responsibility for conduct of the business and can be summoned by the court.

Shree Raj Travels & Tours Ltd v. Destination of the World (Subcontinent) Pvt Ltd., 2010 7 Taxmann.com 64 (Delhi)