https://www.taxtmi.com/caselaws?id=791433 A complaint under Section 138 of the Negotiable Instruments Act, 1881 is not maintainable against a director where liquidation proceedings and appointment of a provisional liquidator had already displaced the directors' control over the company's bank accounts and affairs before dishonour and statutory notice. Once that transition occurs, the directors are functus officio for operating the account or ensuring payment, and the cheque cannot be treated as one that the accused director could practically or legally honour. On that basis, the complaint was found legally non-maintainable and the criminal proceedings were quashed insofar as they concerned the petitioner. en-us Mon, 04 May 2026 00:00:00 +0530 Tue, 12 May 2026 08:50:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791433 A complaint under Section 138 of the Negotiable Instruments Act, 1881 is not maintainable against a director where liquidation proceedings and appointment of a provisional liquidator had already displaced the directors' control over the company's bank accounts and affairs before dishonour and statutory notice. Once that transition occurs, the directors are functus officio for operating the account or ensuring payment, and the cheque cannot be treated as one that the accused director could practically or legally honour. On that basis, the complaint was found legally non-maintainable and the criminal proceedings were quashed insofar as they concerned the petitioner. Case-Laws Indian Laws Mon, 04 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791433