Quick Summary: The Delhi High Court rejected SRK Devbuild Pvt Ltd's request to cancel a court order related to a bounced cheque. The court decided the order was valid even though there were delays and arguments from both sides.
On February 26, 2026, Justice Anup Jairam Bhambhani made a decision about a request from SRK Devbuild Pvt Ltd. The company, through its representative Mr. Ravi Kapoor, wanted to cancel a court order given on August 23, 2018, by the Metropolitan Magistrate in New Delhi. The case was about a bounced cheque.
Bankruptcy Proceedings: SRK Devbuild Pvt Ltd said that bankruptcy proceedings started against them on January 3, 2020, and the company was declared bankrupt on February 26, 2021. They argued this meant no other legal actions could be taken against them.
Cheque Details: The cheque, dated June 5, 2018, for Rs. 2 crores, was from the personal account of Mr. Subhash Chand Aggarwal, not the company's account. Therefore, they argued, the company should not be blamed.
Lack of Specific Claims: SRK Devbuild Pvt Ltd argued that the complaint did not make specific claims against the company and did not mention shared responsibility under the law.
Delay in Petition: Mr. Shashwat Awasthi, representing the Government of NCT of Delhi & Anr., pointed out that the request was delayed, as it was filed in May 2024, after the company went bankrupt.
Directors’ Behavior: The Government of NCT of Delhi & Anr. noted that the company's directors did not show up in court, leading to warrants being issued against them.
Legitimacy of Summons: They argued the cheque was issued to settle a real debt, and the complaint was filed on time.
Justice Bhambhani concluded that:
Legitimacy of Court Order: Even though the court order didn't have detailed explanations, it was valid because it was based on the complaint, supporting documents, and the cheque return memo.
Proceedings to Continue: The court stated that since the cheque was issued before the bankruptcy proceedings, it could still be considered a debt of the company.
Request Denied: The request was denied, and the pause on legal actions against the company was lifted.
The court decided to continue with the legal proceedings against SRK Devbuild Pvt Ltd, stating that the cheque could still be considered a company debt despite the bankruptcy proceedings.
