Signatory Of Cheque Authorised By A Company Is Not Drawer

The Hon'ble High Court of Bombay while dealing with a batch of Petitions, decided a common question of law, being (i) Whether a signatory of a cheque, authorized by a "Company", is the "drawer" and whether such signatory could be directed to pay interim compensation in terms of Section 143A of the Negotiable Instruments Act, 1881 ("NI Act") living aside the company; and (ii) Whether a deposit of a minimum sum of 20% of the fine or compensation is necessary under Section 148 of NI Act in an appeal filed by persons other than "drawer" against the conviction and sentence under section 138 of the NI Act. The Hon'ble Court in its Order dated 8^th March 2023 in Lyka Labs Limited & Anr. v/s State of Maharashtra & Anr. (2023 SCC Online Bom 560) and other connected cases held that the authorized signatory of the company is not a drawer of the cheque in terms of Section 143A of the NI Act and cannot be directed to pay interim compensation thereunder. It was further held that in