Sick Industrial Companies (Special Provisions) Act, 1986, S.22-A -- Dishonour of cheque -- Complaint against sick company -- Effect of restraint order
There is no bar on filing a complaint under S.138 of the NI Act against a sick company -- Even where a restraint order exists under S.22-A of SICA, the nature of such restraint order and the facts of the case must be carefully considered before determining whether proceedings under S.138 of the NI Act can continue -- However, the appropriate stage for taking such a decision would ordinarily be after both parties have led their evidence--Negotiable Instruments Act, 1881, Ss.138 & 141. (Para 22)
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