Shree Nagani Silk Mills (P) Ltd. vs. L. D. Industries Ltd. & Ors. (SC)

Negotiable Instruments Act, 1881–Secs. 138–Sick Industrial Companies (Special Provisions) Act, 1985–Sec. 22A–Discharge by the Revisional Court–Justification–Restraint Order u/s. 22A did not restrain the accused-company to draw on its assets to meet its day-to-day operations and according to the complaint’s allegations, the cheques in question were issued to discharge the liability of the accused-company against supplies made by the complainant-company–Further, the discharge application was not maintainable in view of the earlier decision of the Court in the case of Adalat Prasad–Impugned orders of Revisional Court and High Court are liable to be set aside–Proceedings stood restored.