NO FUNDAMENTAL DEFECT IF COMPANY’S NAME NOT MENTIONED FIRST WHEN SUING THROUGH MANAGING DIRECTOR: SUPREME COURT The Supreme Court on Wednesday ruled that there is no fundamental defect in a cheque bounce complaint simply because the name of the Managing Director (MD) is stated first followed by the post held in the company (Bhupesh Rathod Dayashankar Prasad Chaurasia & amp; Anr). “There could be a format where the Company’s name is described first, suing through the Managing Director but there cannot be a fundamental defect merely because the name of the Managing Director is stated first followed by the post held in the Company, ” held a Bench of Justices SK Kaul and MM Sundresh. The dispute arose when eight cheques issued by the respondent were dishonoured on account of insufficient funds. Despite issuance of legal notices, the demand was not met within 15 days and no reply was sent. Therefore, the appellant filed a complaint before the Special Metropolitan Magistrate, Mumbai. In conclusion, the Court found that the complaint was properly instituted, and the orders of the trial court and high Court were not sustainable. The respondent was sentenced to imprisonment for a term of one year and with fine twice the amount of the cheque, i.e., ₹3, 20, 000. However, the Court stated that if the respondent paid a further sum of ₹1, 60, 000 to the appellant, the sentence would stand suspended. Reddy & amp; Reddy Law Firm is having team of advocates and will help you in all Disputes u/sec 138 of Negotiable Instruments Act.