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Query on negotiable instruments act

Page no : 2

RAKESH PIPRODIA (ADVOCATE)     11 September 2011

AS PER THE MERGERS & ACQUISITIONS ACT, The acquired company assests as well as the liabilites are also been acquired by the acquirer company. So the legal liability of the exixting company automatically passes on to the mergerd enitity as a contingent liablity.

prasanta kumar parida (sr. consultant)     16 September 2011

 Judgment of the High Court is having no binding effect on the subordinate courts as the binding effect of a ruling of Supreme Court under article 141 of the Constitution of India, So in my view the ruling of Delhi High Court is not a good law at all because  it is a company and after meger  as the liability(including criminal liability of  company A) is accepted by company-B the Holder of the Cheque has every right to initiate a proceedingfor punishment by way of imposing fine on Company-Bu/s 138 of N.I. Act

prasanta kumar parida (sr. consultant)     16 September 2011

If you can create a preponderance of probability that, the cheque was not issued against any legally enforceable debt or liability at thre time pof proving contrary as stipulated in section 139 of N.I. Act, thren there will be an acquittal judgment in your favor,as per the ruling of  the Hon'ble Supreme Court of India in a case reported in the year 2006 which has a binding effect on all the subordinate vcourts under Article 141 nof the Constityution of India

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