https://www.taxtmi.com/caselaws?id=111813 A company's sick status under SICA does not by itself warrant quashing of section 138 Negotiable Instruments Act proceedings where the cheque liability is admitted and the transactions were entered into with knowledge of that status. The earlier cases recognising mid-stage quashing power were accepted as principles, but they were held inapplicable on the facts because the appellants continued placing orders and assured payment after the sickness declaration. In those circumstances, the debt remained undisputed and there was no basis to interfere under Article 136. The criminal proceedings were therefore not liable to be discharged and were permitted to continue. en-us Thu, 08 May 2008 00:00:00 +0530 Wed, 14 Aug 2013 16:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111813 A company's sick status under SICA does not by itself warrant quashing of section 138 Negotiable Instruments Act proceedings where the cheque liability is admitted and the transactions were entered into with knowledge of that status. The earlier cases recognising mid-stage quashing power were accepted as principles, but they were held inapplicable on the facts because the appellants continued placing orders and assured payment after the sickness declaration. In those circumstances, the debt remained undisputed and there was no basis to interfere under Article 136. The criminal proceedings were therefore not liable to be discharged and were permitted to continue. Case-Laws Companies Law Thu, 08 May 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111813