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Judgement |
| NEGOTIABLE INSTRUMENTS ACT, 1881 |
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| NEGOTIABLE INSTRUMENTS ACT, 1881 |
NI Act — S 138 — Sick Industrial Companies (Special Provisions) Act, 1985— Section 22 — Sick Industrial Companies (Special Provisions) Repeal Act, 2003 — Section 4(b) — Issuance of process — Ban order passed by the BIFR — Restraint order under SICA in force — Held, the directors of the company were prevented by reasons beyond their control from honouring the cheques — The repeal of SICA, cannot breathe life in the complaint — the offence u/s 138 was not complete — the order of issuance of process is unsustainable. (Para 29) |
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| NEGOTIABLE INSTRUMENTS ACT, 1881 |
NI Act — S 138 — Vis-à -vis — Sick Industrial Companies (Special Provisions) Act, 1985— Section 22 — Pendency of proceedings under Section 22(1) of the SICA alone is not sufficient to get absolved from the liability u/s 138, NI Act. (Para 24) |
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| NEGOTIABLE INSTRUMENTS ACT, 1881 |
NI Act — S 138 — Sick Industrial Companies (Special Provisions) Act, 1985— Section 22A — Declaring a Company sick & passing of restraint order — Dishonour of Cheque — Held, if before the date on which the cheque was drawn or expiry of the statutory period of 15 days after notice, a restraint order of BIFR under Section 22A was passed against the company— then it cannot be said that the offence u/s 138 completed— Failure to make the payment would be for reasons beyond the control of the accused — amount claimed is not recoverable from the assets of the company in view of the ban order passed by the BIFR. (Para 25) |
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