CORPORATION BANK Vs. SAHYOGI DISTRIBUTORS LTD.

JUDGEMENT

(1.) Heard Mr. Joy Saha, learned counsel appearing for the appellant and Ms. Smita Das Dey, appearing for the Official Liquidator.

(2.) Causes being sufficient, this application is allowed. Delay, if any, is condoned. Abatement is set aside. The Official Liquidator is substituted in place and stead of the respondent no.1. Department is directed to carry out the amendment forthwith. GA 3806 of 2013 is, thus, disposed of. Despite service of notice, the Company Vikash Metals & Power Ltd., represented by M/s. Khaitan & Co, Advocates is absent. In respect of respondent Sahyogi Distributors Ltd., we have substituted the Official Liquidator in place and stead of the Company as the Company has since gone into liquidation. These appeals would relate to two orders; one restraining the bank from initiating any proceeding before the Criminal Court under section 138 of the Negotiable Instrument Act in respect of the cheques those were dishonoured by the drawer and money was received by the respondent company in anticipation that the same would be encashed. The other 'order would relate to a caution being given to all other financial institutions in respect of the respondent companies as they failed to repay the dues of the Bank.

(3.) Mr. Joy Saha, learned Counsel appearing for the Bank would contend, the Bank is lawfully entitled to initiate proceeding under section 138 of the Act; whether the proceeding would be maintainable or not is a question to be decided by the appropriate Court. The learned Judge should not have issued an order of restraint. Similarly, it is the duty of the Bank to caution the other financial institutions so that they do not suffer by making further advance to those companies.