https://www.taxtmi.com/caselaws?id=426632 A complaint under Section 138 of the Negotiable Instruments Act against a company in liquidation is stated not to require leave of the Company Court under Section 446(1) of the Companies Act, because criminal cheque-dishonour proceedings are outside the "suit or other proceedings" contemplated by that provision. Winding up, including winding up following default under consent terms, does not by itself extinguish the underlying debt or automatically bar prosecution under Section 138; liability continues to depend on the statutory ingredients of cheque issuance, dishonour, notice, and non-payment. A further challenge based on process being issued before verification was rejected where the record showed only an inadvertent date discrepancy. en-us Fri, 19 Aug 2022 00:00:00 +0530 Tue, 23 Aug 2022 08:19:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=426632 A complaint under Section 138 of the Negotiable Instruments Act against a company in liquidation is stated not to require leave of the Company Court under Section 446(1) of the Companies Act, because criminal cheque-dishonour proceedings are outside the "suit or other proceedings" contemplated by that provision. Winding up, including winding up following default under consent terms, does not by itself extinguish the underlying debt or automatically bar prosecution under Section 138; liability continues to depend on the statutory ingredients of cheque issuance, dishonour, notice, and non-payment. A further challenge based on process being issued before verification was rejected where the record showed only an inadvertent date discrepancy. Case-Laws Indian Laws Fri, 19 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=426632