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TMI Blog1998 (12) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No. 39 of 1998. The said writ petition was directed against the issuance of process under section 138 of the Negotiable Instruments Act, 1881. 3. The learned counsel for the petitioner contends that in a case where proceedings, including a complaint are initiated against a company in respect of which proceedings are registered under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 ( the SICA ), before the Board or before the Appellate Authority no criminal complaint can be filed without taking permission of the Board or Appellate Authority. It is contended that in such an event it is not a debt recoverable under the Explanation to section 138 of the Negotiable Instruments Act and if it be a debt that can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. It refers to the definition given by Lindley L. J. in Webb v. Stenton [1883] 11 QBD 518 (at page 527)... a debt is a sum of money which is now payable or will become payable in future by reason of a present obligation." It is, therefore, contended that if it is not presently recoverable no offence under section 138 can be spelt out. On proceedings being registered the debt is not legally payable and, therefore, no complaint will be maintainable. I am unimpressed. Chapter 18 which includes section 138 was inserted by the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988, with effect from 1-4-1989. It is a Central legislation. Section 138 requires that where a cheque drawn by a person on an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or for the enforcement of any security against the industrial company or of any guarantee in respect of any loans, or advance granted to the industrial company" was introduced by the Sick Industrial Companies (Special Provisions) Amendment Act, 1993. The only effect of the said amendment is that whereas earlier proceedings for winding up or for execution, distress or the like against the assets of the company could not be initiated without the permission, consequent to the amendment, no suit for recovery of money or for enforcement can be instituted without permission or continued if instituted. This to my mind makes no difference whatsoever. Under section 22 recoveries in the nature of civil debts are prohibited except as provided therein. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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