AIROnline 2025 SC 816

Negotiable Instruments Act (26 of 1881) , S.138, S.141— Sick Industrial Companies (Special Provisions) Act (1 of 1986) , S.22A— Cheque dishonour – Complaint against sick company – Entertainability – Allegation that cheque issued by accused company, towards part payment for supplies made by complainant, was dishonoured with remark “insufficient funds” – Plea of accused that criminal complaint for cheque dishonour cannot be entertained against a “sick” company and its directors – There is no general embargo on filing a complaint u/S. 138 of NI Act against a sick company – Even when a restraint order exists u/S. 22A of SICA, nature of such order and facts of case must be considered in the light of evidence presented at trial – Restraint order against accused company by Board of Industrial and Financial Reconstruction declaring it ‘sick’ did not prevent it from using its assets for day-to-day operations – Cheques were issued for discharging liability of accused against supplies made by complainant – Accused could not have been discharged at preliminary stage – Proceedings were restored before Magistrate for trial
AIROnline 2023 BOM 2770-ReversedAIR 2000 SC 954-FollowedAIR 2008 SC 3143-Followed

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