NAGARJUNA FINANCE LTD Vs. KANOSIKA LABORATORIES LIMITED

JUDGEMENT

(1.) These fiveCompany Applications are beingdisposed of bya common order as all the applications are for the same purpose.

(2.) Facts in C. A.No. 591 of 1997 may be stated for purpose of understandingthe nature of application.

(3.) The petitioner-company is a Company registered under the CompaniesAct, 1956 (hereinafter referred to as 'the Companies Act'). In course of its business, respondent No. 1-company approached the petitioner and obtained a Diesel Generator on Hire Purchase Agreement on 28-2-1994. As per agreement the cheques issued by the respondent-company towards various instalments, when presented by the petitioner-company,, were returned dishonoured, because respondent No. 1-company had issued instructions to the Banker to stop payment. The petitioner-corn pany then instituted a criminal complaints against the respondent No. 1-company. The complaints were against the company, as well its Managing Director under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as the 'Act') for dishonour of the cheque. Such five complaints were registered separately before the concerned Magistrate. In the meantime one other company instituted Winding up proceedings against respondent No.1-company in Company Petition No. 58 of 1995. The Company Court after due enquiry passed Winding up Order on 25-7-1997. The criminal cases initiated by the petitioner-company came up before the concerned Magistrate on 17-5-1997 for further proceedings. At that point of time, the learned Magistrate stayed the proceedings on the ground that the petitioner-company had not obtained permission from the Company Court as required by Section 446 of the Companies Act. The petitioner-company as a result of the stay order approached this Court, by the present application, for obtaining permission/ leave to continue the criminal proceedings pending against the respondent No. 1-company.