Can A Case For Cheque Bounce And Winding Up Run Simultaneously

Company A, which had placed an Inter corporate deposit with company B against demanding promissory note, receipts and post dated cheques. The cheques were bounced and company A filed section 138 cases on company B and its directors. While the matter is being heard, now the company A has filed “company winding up petition” against company B for recovery of the same money. Now the issue is – Will both run in parallel or can company B pray for staying of section 138 cases, until the winding up petition is disposed off? – If so, what are the appropriate laws or precedences of any high court/supreme court judgements?
Posted 1 year ago  | 
Cheque Bounce
Cheque Bounce

1 Answer(s)

Rashi Gahlaut
Advocate

The position in case of winding up of company is such that mere filing of application for winding up of company will not act as a bar to proceedings under section 138 of the Negotiable Instruments Act against that company. The same has been held in 1999 (1) Bank CLR 687.