The appellant, Shree Nagani Silk Mills Pvt. Ltd., filed multiple complaints under Sections 138 and 141 of the Negotiable Instruments Act, 1881, against L.D. Industries Ltd. (the accused company) and its directors (respondents 2 to 5) for the dishonour of cheques issued as part payment for supplies. The accused company, having been declared 'SICK' by the Board of Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), sought to recall the summons, arguing that a BIFR restraint order under Section 22A of SICA barred such proceedings. The Magistrate rejected the recall application, but the revisional court subsequently allowed the revision, setting aside the Magistrate's order and discharging the accused.
…Shree Nagani Silk Mills Pvt. Ltd. (appellant) lodged separate complaints under Section 138 read with Section 141 of the N.I. Act against L.D. Industries Ltd. (accused company) and four others (respondents 2 to 5).
The accused company issued cheques to the complainant as part payment for supplies.
The cheques were deposited for collection but were dishonoured due to "insufficient funds".
The complainant served notice on all accused, demanding payment, but the amount was not paid.
The accused company, L.D. Industries Ltd., was declared 'SICK' by the Board of Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).
A legal embargo was imposed on the disposal of the accused company's assets without BIFR's consent.
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BIFR issued a restraint order under Section 22-A…
The cheques in question, which were…
The appellant, Shree Nagani Silk Mills Pvt. Ltd., filed multiple complaints under Sections 138 and 141 of the Negotiable Instruments Act, 1881, against L.D. Industries Ltd. (the accused company) and its directors (respondents 2 to 5) for the dishonour of cheques issued as part payment for supplies. The accused company, having been declared 'SICK' by the Board of Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), sought to recall the summons, arguing that a BIFR restraint order under Section 22A of SICA barred such proceedings. The Magistrate rejected the recall application, but the revisional court subsequently allowed the revision, setting aside the Magistrate's order and discharging the accused.
…Shree Nagani Silk Mills Pvt. Ltd. (appellant) lodged separate complaints under Section 138 read with Section 141 of the N.I. Act against L.D. Industries Ltd. (accused company) and four others (respondents 2 to 5).
The accused company issued cheques to the complainant as part payment for supplies.
The cheques were deposited for collection but were dishonoured due to "insufficient funds".
The complainant served notice on all accused, demanding payment, but the amount was not paid.
The accused company, L.D. Industries Ltd., was declared 'SICK' by the Board of Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).
A legal embargo was imposed on the disposal of the accused company's assets without BIFR's consent.
…BIFR issued a restraint order under Section 22-A…
The cheques in question, which were…