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e., the signatories to your cheques/directors of the corporate debtor escape prosecution. How can a person allow the pure persons to escape legal responsibility on these types of specious plea?”
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to offer for summary demo with the cases under the Act having a check out to dashing up disposal of situations;
In light from the foregoing, the Supreme Court, following reviewing numerous rulings on the true character of procedures underneath Chapter XVII on the Act, concluded the method below Segment 138 may be called a “civil sheep” dressed to be a “felony wolf.”
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Despite numerous makes an attempt built from time to time to make sure the timely, Expense-effective, and seamless disposition of situations involving Verify dishonour, the predicted impact on circumstance pendency wasn't obtained.
To enhance the acceptability of cheques in settlement of liabilities by building the drawer accountable for penalties in the event of dishonour of cheques on account of insufficiency of resources while in the accounts.
What is dissolved, is simply the business, not the personal penal legal responsibility of your accused included under Section 141 on the NI Act.
The ruling harmonises and harmonises the Code’s and Act’s provisions. It preserves the corporate debtor’s belongings in the course of the insolvency resolution procedure though also allowing for Restoration methods versus directors/persons in administration or control of the company debtor to carry on under the phrases of Section 138 on the Act.
Offered the breadth in the phrase “proceedings,” as Formerly proven, the courtroom decided that it had been extremely hard to concur that it should be limited to civil litigation only.
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