2002 (11) TMI 674 - HC - Companies Law

Summary

The High Court of Delhi dismissed the petition seeking to quash proceedings under section 138 of the Negotiable Instruments Act. The court clarified that these proceedings are independent and of a criminal nature, allowing for punishment with imprisonment or a fine twice the amount of the cheque. Petitioner Nos. 2 and 3 can raise their plea before the Trial Court as per section 141 of the Act. The petition was dismissed with liberty for petitioners 2 and 3 to seek recall of the summoning order at the Trial Court.