In Brief
A textile company (appellant) filed cheque dishonour complaints under Section 138 of the Negotiable Instruments Act against a company declared "SICK" under the Sick Industrial Companies Act. The accused sought to quash proceedings citing a restraint order prohibiting asset disposal. The trial court summoned the accused, but a revisional court discharged them; the High Court upheld this. The Supreme Court allowed the appeals, holding that no bar exists on filing Section 138 complaints against SICK companies. While a restraint order's effect must be considered based on facts, the decision on whether proceedings should continue is ordinarily made after parties present evidence at trial, not at the threshold. Trial courts cannot recall summons once issued. The proceedings were restored to the Magistrate.
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