In Brief
The appellant resigned as director of Zylog Systems Limited on 24 June 2013, which was formally recorded in Form 32 filed with the Registrar of Companies. Subsequently, on 15 September 2013, the company issued cheques that bounced. The respondent filed a criminal complaint against the company and all directors, including the appellant, under Sections 138 and 141 of the Negotiable Instruments Act. The High Court dismissed the appellant's plea to quash proceedings. The Supreme Court allowed the appeal, holding that a former director who has ceased association with company affairs cannot be held liable for the company's actions occurring after resignation. The proceedings against the appellant were accordingly quashed.
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