https://www.taxtmi.com/caselaws?id=791373 A cheque complaint under Section 138 of the Negotiable Instruments Act was held unsustainable where the company had already come under provisional liquidation and the former management no longer controlled its affairs. Once the provisional liquidator was appointed, authority over the company's assets and instruments vested in the liquidator, so cheques filled and presented without such authority could not found criminal liability. Dishonour marked "Account Blocked" also did not satisfy Section 138 on these facts because the dishonour arose from the liquidation-related loss of control, not from insufficiency of funds or an equivalent statutory condition. The criminal petition therefore failed. en-us Fri, 22 Aug 2025 00:00:00 +0530 Mon, 11 May 2026 09:50:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791373 A cheque complaint under Section 138 of the Negotiable Instruments Act was held unsustainable where the company had already come under provisional liquidation and the former management no longer controlled its affairs. Once the provisional liquidator was appointed, authority over the company's assets and instruments vested in the liquidator, so cheques filled and presented without such authority could not found criminal liability. Dishonour marked "Account Blocked" also did not satisfy Section 138 on these facts because the dishonour arose from the liquidation-related loss of control, not from insufficiency of funds or an equivalent statutory condition. The criminal petition therefore failed. Case-Laws Indian Laws Fri, 22 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791373