Proceedings Under Section 138 NI Act Not Maintainable for Dishonour of Cheques Issued on Behalf of Dissolved Company: Delhi High Court
The Delhi High Court has ruled that proceedings under Section 138 of the Negotiable Instruments Act, 1881 cannot be sustained when the complainant company presenting the dishonoured cheque has already been dissolved or struck off from the register of companies. Justice Arun Monga made this significant observation while allowing two petitions filed by directors of a company who had been booked for dishonour of cheques issued by their firm to…
