Supreme Court: In a special leave petition assailing the Bombay High Court order wherein Petitioner 1 was held liable under Section 138, Negotiable Instruments Act, 1881 (NI Act), even though the company was under liquidation, the Division Bench of B.V. Nagarathna and Ujjal Bhuyan, JJ., refused to interfere with the High Court order and dismissed the SLP.
The petitioners-accused had taken a loan from Respondent 1/complainant and allegedly repaid the amount through a post-dated cheque signed by Petitioner 1 in his capacity as Director and authorised signatory of Respondent 2-Company. The cheque was dishonoured, following which Respondent 1 filed a complaint under Section 138, NI Act. Subsequently, an order of liquidation was passed against Respondent 2-Company.
Also Read: Section 138 NI Act Explained: When Does a Cheque Bounce Become a Criminal Offence?
The petitioners filed an application for discharge, which was allowed by the trial court on the ground that, post liquidation, they had ceased to be Directors and could not be held liable.
Aggrieved, Respondent 1 approached the Bombay High Court, which allowed the writ petition and held that liability under Section 138, NI Act subsists notwithstanding initiation of proceedings under the Insolvency and Bankruptcy Code, 2016. The order of discharge was accordingly set aside.
Aggrieved thereby, the petitioners preferred the present special leave petition. The Court found no reason to interfere with the impugned order and dismissed the special leave petition.
[Abhaykumar Anandkumar Bhambore v. Ortho Relief Hospital and Research Centre, SLP (Crl.) No. 19823 of 2025, ordered on 16-4-2026]
Advocates who appeared in this case:
For the petitioner: AOR Nitin Bhardwaj
For the respondent: AOR Vatsalya Vigya with Saahiil Dewani, Shakul R. Ghatole, Shyam Dewani, Sachet Makhija, and Dashang Doshi, Advocates