Negotiable Instrument Act

Hemant Joshi (Querist) 07 May 2009 This query is : Resolved
One party had filed 10 cases u/s 138 of N. I. Act at Chhatisgarh for return of cheques against the directors and officers of a public limited company of Ahmedabad. Due to dim chances of revival, the co. was ordered to be wound up in yr.2003. Out of 10 cases, 9 cases were settled by making the payment of principal amount by the ex-directors and the party withdrew all 9 cases in yr.2004. The complainant intentionally did not accept the payment of the last 10th case and has not settled in last 5 years, in spite of the willingness to pay the last amount of principal amount.
Now in yr.2009,the ex-directors of company has got sanctioned by the high court of Gujarat, a scheme of revival and restructuring of the said co u/s 391-394 of the co.’s act. Under the scheme, all the creditors would be paid 25% of principal amount in two installments. The said terms of the scheme were approved by the creditors present in person or proxy (that creditor was not present in person or proxy) in their meeting unanimously with 100% voting in favour. The scheme also stipulates that all the cases against the co. and / or directors-officers of the co. would be withdrawn after getting the amount as per the scheme and if any amount paid after the cut-off date can be also deducted from the payable amount. The payments of those 9 cases were made after cut-off date.
In light of the above facts (1) can the co. appeal to the court at Chhatisgarh and to the complainant to accept the last amount of settlement and withdraw the last case also without demanding interest, penalty and punishment? (as the complainant intends to resort to arm twisting for more payment) (2) The directors can say to the court that as per the scheme enough was paid and can claim an excess amount paid to the said creditor, as the sanctioned scheme stipulates lesser payment?
Please reply and oblige.

Follow Query

Report Abuse

A V Vishal (Expert) 07 May 2009
Dear Joshi,

As the scheme for revival is approved by the court, the company can appeal for settlement as approved by all the creditors. The plaintiff has to accept and cannot press for punishment of your client.