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Indian Laws - Highlights / Catch Notes

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Dishonor of Cheque - CIRP - dissolution of company as per ...


Dissolution in CIRP Doesn't Nullify Section 138 NI Act Proceedings; Personal Liability of Signatories Remains Intact.

March 17, 2023

Case Laws     Indian Laws     SC

Dishonor of Cheque - CIRP - dissolution of company as per resolution plan - where the proceedings under Section 138 of the NI Act had already commenced with the Magistrate taking cognizance upon the complaint and during the pendency, the company gets dissolved, the signatories/directors cannot escape from their penal liability under Section 138 of the NI Act by citing its dissolution. What is dissolved, is only the company, not the personal penal liability of the accused covered under Section 141 of the NI Act. - SC

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