2018 ACD 798 (KER) ::(2018) 4 RecCriR 310 ::(2018) 3 Ker LJ 337 ::2018 (2) KLT SN 88 (KER)

Kerala High Court

Hon'ble Judge(s): B. Sudheendra Kumar , J

Negotiable Instruments Act (26 of 1881) , S.138, S.141— Dishonour of cheque - Proceedings against wound up company - Maintainability - If company is wound up as per order of Court prior to completion of offence under S. 138, no complaint against company and its erstwhile Directors is maintainable - Company wound up on 30/9/2009 - Cheque issued by company got dishonoured on 2/2/2010 - Complaint against company and its Directors, not maintainable. If cause of action arose subsequent to order of winding up of company, it cannot be said that offence under Section 138 of N. I. Act is completed. Date on which cheque was handed over would have no bearing. Cause of action arises only when cheque presented for encashment is dishonoured and drawer fails to make payment of cheque amount within statutory period, after receipt of demand notice. Therefore, if company is wound up as per order of court prior to completion of offence under Section 138 of N.I. Act, no complaint against company and its erstwhile Directors, is maintainable. On other hand, if company is ordered to be wound up by court subsequent to completion of the offence under Section 138 of N. I. Act, prosecution under Section 138 of N. I. Act is maintainable against company and its Directors notwithstanding order passed by court for winding up of company.(Para 27 28) ....