# In the matter of Anuradha Kapoor & Ors. vs. State of Maharashtra & Ors.

> HC judgment dated 2023-11-29. Citation: TCN-2023-HC-00011. The case involves a criminal application (APL No. 566/2023) filed in the High Court of Judicature…

- **Court:** HC
- **Order date:** 29 Nov 2023
- **Citation:** TCN-2023-HC-00011
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/anuradha-kapoor-ors-vs-state-of-maharashtra-ors-38a25ef2

## Summary

### Background

The case involves a criminal application (APL No. 566/2023) filed in the High Court of Judicature at Bombay, Bench at Nagpur, by several applicants who are accused in a criminal complaint filed by MPM Private Limited under Section 138 of the Negotiable Instruments Act, 1881. The applicants are aggrieved by the order passed by the Additional Chief Judicial Magistrate, Nagpur, rejecting their application for compounding the offence upon full payment of the cheque amount. The applicants contend that the order suffers from non-consideration of the law laid down by the Supreme Court in Damodar S. Prabhu vs. Sayed Babalal and Meters and Instruments Private Limited vs. Kanchan Mehta. The applicants, who are directors of Castex Technologies Limited, were accused of dishonoring

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## Facts

Castex Technologies Limited, with directors including the applicants, faced allegations of dishonoring a cheque for Rs. 15 lakhs issued to MPM Private Limited for the supply of Lustron, Inoculant, and Nodulant (foundry consumables). The total material supplied was approximately Rs. 3.16 crores. The cheque, No. 805627 dated 23.12.2017, drawn on State Bank of India, Finance branch, New Delhi, was returned unpaid with the remarks 'insufficient funds'. Subsequently, a complaint was filed under Section 138 read with Section 142 of the NI Act and Section 420 of the Indian Penal Code. Castex Technologies Limited was admitted to insolvency on 20.12.2017, following an application by SBI. An Interim Resolution Professional was appointed on 22.12.2017. MPM Private Limited filed

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## Issues and analysis

### Issue 1: Whether the Magistrate's order rejecting the application for compounding the offence under Section …

**Ratio:** The Supreme Court in Damodar S. Prabhu vs. Sayed Babalal laid down guidelines for

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**Reasoning:** The High Court found that the Magistrate's order was not justified because the Magistrate

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**Interpretation:** The court interpreted the Supreme Court's guidelines in Damodar's case as

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**Application:** The High Court applied the guidelines in Damodar's case to the facts of the

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## Parties

- **Judges:** Anil L. P…
- **Appellants:** Anuradha…
- **Respondents:** Castex Technologie…; State of Maharasht…
- **Other parties:** Kohi…

## Timeline

- **2017-12-20 — Admission to I…**: Castex Technologies Limited was admitted to…
- **2017-12-22 — Appointment…**: Interim Resolution Professional was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 17 — Management of affairs of corporate debtor by…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-17)

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