PAAM PHARMACEUTICAL DELHI LIMITED Vs. STATE

JUDGEMENT

(1.) This batch of petitions under Section 482 Cr. P.C. raises the following questionfor determination;

(2.) Whether a company can be proceeded against for having committed an offenceunder Section 138 of the Negotiable Instruments Act (for short the 'Act') after thecompany has been declared sick under the provisions of the Sick Industrial Companies(Special Provisions Act) 1985 before the expiry of the period of payment of thecheque amount? Since a common question of law is involved in the Petitions beforme, they are being disposed of by this common order.

(3.) The factual position about which there is no dispute may be stated thus: M/sPaam Pharmaceutical (Delhi) Limited is a Public Limited company. Five complainteunder Section 138 of the Act were filed against the petitioner company before theMetropolitan Magistrate New Delhi. The complaints contained the allegations thatcheques were issued on behalf of the petitioner company in favour of the respondentWhen these cheques were presented for payment they were dishonored by thedrawee bank on the ground of insufficiency of funds in the account. Then respondentissued notices to the petitioner company demanding payment of the amounts coveredby the cheques. Since no payment was made within the period stipulated under thAct, the respondents filed complaints against the Company and its Directors for thoffence punishable under Section 138 of the Act in respect of each cheque. ThMagistrate took cognizance of the offence on each of the complaints and issueprocess against the accused. Aggrieved thereby the petitioners have filed the presentpetitions under section 482 Cr. F. C. seeking quashment of the complaints fileagainst them.