https://www.taxtmi.com/caselaws?id=104652 The Supreme Court affirmed the Bombay High Court's decision, ruling that the presentation of a winding-up petition does not absolve a company from penal liability under section 138 of the Negotiable Instruments Act. The Court clarified that the mere presentation of a winding-up petition does not prevent the company from fulfilling its payment obligations. Additionally, the Court emphasized that the issuance of a cheque does not constitute a disposition of property until payment is made by the banker. The Court also highlighted that the failure to make payment under section 138 results in penal liability, irrespective of the reason for non-payment. en-us Tue, 15 Feb 2000 00:00:00 +0530 Tue, 17 Jun 2014 13:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104652 The Supreme Court affirmed the Bombay High Court's decision, ruling that the presentation of a winding-up petition does not absolve a company from penal liability under section 138 of the Negotiable Instruments Act. The Court clarified that the mere presentation of a winding-up petition does not prevent the company from fulfilling its payment obligations. Additionally, the Court emphasized that the issuance of a cheque does not constitute a disposition of property until payment is made by the banker. The Court also highlighted that the failure to make payment under section 138 results in penal liability, irrespective of the reason for non-payment. Case-Laws Companies Law Tue, 15 Feb 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104652