R. Rajendra Babu, J. - This appeal is at the instance of the applicant in C.A. No. 257/98 in C.P. 20/94 on the file of this Court (Company Court). The applicant, the Managing Director of M/s. Belhouse Associates (P) Ltd., who was an accused in C.C. No. 456/96 pending before the Additional Chief Judicial Magistrate's Court, Emakulam filed C.A. 257/98 before the Company Court to stay the above proceedings invoking Section 446 of the Companies Act. The Company Court dismissed the above application and the above order is under challenge in this appeal.

2. The 2nd respondent herein (complainant) filed C.C. 456/96 before the Additional Chief Judicial Magistrate's Court, Emakulam against the applicant and M/s. Belhouse Associates (P) Ltd., a Company under liquidation, for the commission of an offence under Section 138 of the Negotiable Instruments Act. It was alleged that cheque for Rs. 1.12,000/- issued by the accused on 19-1- 1996 towards discharge of a liability to the complainant for the electrical works done by them, was dishonoured when presented for encashment, due to the insufficiency of funds in the accounts in the name of the accused and they had not cared to pay the amou