SCAN ORGANICS LIMITED Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) - Rule. Returnable forthwith. By consent heard both sides. This writ petition is filed for quashing the proceedings in case Nos. 739/ S/1998, 740/s/1998 and 741/s/1998 on the file of Additional Chief Metropolitan Magistrate, 37th court, Esplanade, Bombay. The aforesaid cases were filed on account of dishonouring of three cheques issued by the petitioner company in favour of the respondents for Rs. 1,01,155/- each. The cheques were drawn on 29th June, 29th july and 29th August, 1997 respectively, on the Oriental bank of Commerce, Ghatkopar (W) Branch, Bombay. Even after the statutory notice as envisaged under section 138 of the negotiable Instruments Act, the respondent did not pay the amount covered by the cheques. Therefore, the complaint was filed before the Chief Metropolitan Magistrate by the respondent No. 2.

(2.) THE petitioner in this writ petition inter alia has contended that the first petitioner company has been registered before the Board for Industrial Financial reconstruction, under section 15 of the Sick Industrial companies (Special Provisions) Act, 1985 and therefore no prosecution against the petitioner company and directors are maintainable.

(3.) THE Supreme Court had examined this question in two of its recent decisions. In M/s BSI Ltd. vs. Gift Holdings pvt. Ltd. reported in Judgment Today 2000 (II) S. C. page 127, has examined the first facet and held that if the offence is proved to be committed by the company, its directors are liable. In para 19, the Supreme Court held thus :