M/S. BSI LTD. AND ANR. versus GIFT HOLDINGS PVT. LTD. AND ANR. ETC.

M/S. BSI LTD. AND ANR. versus GIFT HOLDINGS PVT. LTD. AND ANR. ETC.

Prosecution under Section 138 of the Negotiable Instruments Act against companies and their directors is maintainable even if the company is declared sick under SICA after the offence is committed and complaints are instituted, as Section 22(1) SICA does not bar criminal prosecutions.

Parties
Appellant: M/S. BSI Ltd.; Respondent: GIFf Holdings Pvt. Ltd.
Jurisdiction
India
Judgment Date
15 February 2000
Procedural Posture
Criminal Appeal / Supreme Court Judgment on Special Leave Petition
Outcome
Appeal dismissed
Legal Topics
Dishonour of Cheques, Prosecution of Sick Companies, Negotiable Instruments Act, Sick Industrial Companies Act
Criminal Law Corporate Law Dishonour of Cheques Prosecution of Sick Companies Negotiable Instruments Act Sick Industrial Companies Act

Case Brief

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Parties

M/S. BSI Ltd.

Appellant

GIFf Holdings Pvt. Ltd.

Respondent

Procedural Posture

Criminal Appeal / Supreme Court Judgment on Special Leave Petition

Legal Issues

  1. 1 Whether a company declared sick under SICA after institution of complaints under Section 138 of Negotiable Instruments Act is liable to be prosecuted in view of the embargo in Section 22(1) of SICA

Ratio Decidendi

Prosecution under Section 138 of the Negotiable Instruments Act against companies and their directors is maintainable even if the company is declared sick under SICA after the offence is committed and complaints are instituted, as Section 22(1) SICA does not bar criminal prosecutions.

Court Disposition

Appeal dismissed

Orders

  • Appeals and Special Leave Petitions dismissed; no interference with High Court decision