1999 (11) TMI 808 - SUPREME COURT

When a company, which committed the offence under section 138 of the Negotiable Instruments Act, 1881 eludes from being prose-cuted thereof, can the Directors of that company be prosecuted for that offence?

Held that:- Appeal dismissed. We are not impressed by the contention that section 139 would afford support to the plea that prosecution of the company is sine qua non for persecuting its directors under section 141. Even if the prosecution proceedings against the company were not taken or could not be continued, it is no bar for proceeding against the other persons falling within the purview of sub-sections (1) and (2) of section 141. In the light of the aforesaid view we do not consider it necessary to deal with the remaining question whether winding up order of a company would render the company non-existent.