CrPC applies to sick companies that issue dishonoured cheques | SupportBiz

In Brief

CrPC applies to sick companies that issue dishonoured cheques

 
Supreme Court ruling

The Supreme Court announced recently that proceedings against bounced cheques under the Negotiable Instruments Act would be considered independent of revival bids by sick companies. The proceedings would continue even if an attempt is on to revive a sick company under the Companies Act. The Court ruled that the said charges cannot be compounded.

In the absence of a special procedure, the procedure under the Criminal Procedure Code (CrPC) should be followed against a sick company that has issued a bounced cheque, reports Business Standard.