AI Overview...
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Sister Concerns and Payment Liability - Companies identified as sister concerns with common directors, sharing understanding regarding supply and payment obligations. Payments made by one sister concern are linked to the other, but liability for cheques issued by one on behalf of another depends on the context and evidence of common authority or understanding. Cheques issued by sister concerns may not automatically establish liability unless supported by clear proof of agency or authority. Anil Sachar VS Shree Nath Spinners P. Ltd. - Rajasthan, Anil Sachar VS Shree Nath Spinners Pvt. Ltd. - Punjab and Haryana, Krishna Bai VS Arti Press. - Kerala
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Cheque Issuance and Liability - Liability for cheques issued by a sister concern hinges on whether the issuance was authorized or made in discharge of liabilities. In cases where cheques are issued by directors of one sister concern for liabilities of another, courts scrutinize the nature of the relationship and the authority, often requiring explicit evidence of agency. Without such, the accused may be held not liable. Anil Sachar VS Shree Nath Spinners Pvt. Ltd. - Punjab and Haryana, Krishna Bai VS Arti Press. - Kerala
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Service of Notice - Serving statutory notices on a sister concern does not constitute valid service on the main accused company unless it is established that the sister concern is authorized to receive such notices or that the notice was effectively received. Addressing notices to sister concerns without proof of receipt can invalidate proceedings. D. C. W. Home Products VS State of Maharashtra - Dishonour Of Cheque, Sunrise Oleo Chemicals Ltd. VS K. M. Enterprises - Crimes, D. C. W. Home Products Ltd. VS State of Maharashtra - Andhra Pradesh
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Transactions Between Sister Concerns - Multiple transactions, including issuance of demand notices and cheques, occur between sister concerns with common directors. Evidence suggests that such companies often operate in tandem, sharing resources and transactions, but legal liability depends on the specifics of authorization and the nature of the transaction. Anil Sachar VS Shree Nath Spinners P. Ltd. - Dishonour Of Cheque, Anil Sachar VS Shree Nath Spinners P. Ltd. - Crimes
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Overall Analysis - Courts emphasize the importance of clear evidence of authority, agency, or understanding when establishing liability for cheques or notices issued by sister concerns. Mere commonality of directors or shared premises does not automatically impose liability; explicit proof of agency or authority is necessary. Notices addressed to sister concerns require proper acknowledgment to be valid. Anil Sachar VS Shree Nath Spinners P. Ltd. - Rajasthan, Anil Sachar VS Shree Nath Spinners Pvt. Ltd. - Punjab and Haryana, D. C. W. Home Products VS State of Maharashtra - Dishonour Of Cheque
Conclusion:
Liability for cheques or notices issued by sister concerns is contingent upon demonstrating actual authority, agency, or explicit understanding between the entities. Courts scrutinize the nature of transactions and the proof of receipt or authorization to determine validity and liability.
Search Results for "138 Cannot be Filed for Sister Concern"
2011 0 Supreme(Raj) 679 • India - Rajasthan
MUKUNDAKAM SHARMA, ANIL R.DAVE
among sister concern and complainant that in consideration of goods supplied to one of the sister concern payment would be made ... payment of goods purchased by sister concern — Companies are sister concerns having common directors — There was an understanding ... by other sisters concern — Cheque issued by other #H....
2008 0 Supreme(P&H) 2126 • India - Punjab and Haryana
S.D.ANAND
complaint that in order to discharge liability of making payments accused issued two cheques in favour of complainant through their sister ... ;(B) Dishonour of cheque--Offence by company--Cheque issued by director of company in discharge of liability of its sister ... concern company--No averment in complaint about commonness of Board of Directors between two concerns--Accused held not liable-- ... The averment that chequ....
1991 0 Supreme(Ker) 179 • India - Kerala
PADMINI JESUDURAI
, 1881 and its interpretation in the context of liability for a cheque issued by a sister concern. ... Issues: The issues involved the liability for a cheque issued by one concern to cover liabilities of another concern, and ... liabilities of the other concern, which was returned unpaid. ... Surya Advertising Private Ltd., the sister concern M/s.Mudra Graphics Private....
• India - Dishonour Of Cheque
D.G.DESHPANDE
In such case service of notice on sister concern cannot be deemed as service of notice on accused. ... accused to their registered office, it is addressed to sister concern of accused—Absolutely no relevancy in serving notice on sister ... of statutory notice on sister concern—Validity—Accused specifically denied receipt of notice—Instead of addressing....
• India - Crimes
T.CH.SURYA RAO
drawn by accused No.2 on the account of company "Sunrise Oil Mills" for discharge of debt of appellant Co. - Both companies were sister ... Such avoidance may be by various means and such means cannot be put in a straightjacket formula, such an inference of deemed service ... event the notice is not received and when it is not a case where the court draws the conclusion that it is a deemed service, it cannot ... Sunrise Oleo Chemicals Limit....
2015 0 Supreme(Mad) 993 • India - Madras
M.SATHYANARAYANAN
that cheques given in favor of Apparels have been used by complainant namely Weaves represented by its partner and therefore it cannot ... concern - Both firms are doing textile business - Accused has purchased textiles respectively and accused issued two cheques drawn ... his two sons and one of daughter-in-laws are also partners of firm namely Apparels which is also situated in same premises as a sister ... The learned counsel for the app....
• India - Crimes
D.G.DESHPANDE
demand notice was issued by some one authorised on behalf of accused company and not by any body from sister concern — PW 1 examined ... concern of accused company — It was for complainant to prove by cogent reliable evidence that acknowledgement issued on copy of ... by hand — Admittedly demand notice was not given to accused company on its registered office address but rather was addressed to sister ... There was absolut....
2004 0 Supreme(AP) 442 • India - Andhra Pradesh
D.G.DESHPANDE
demand notice was issued by some one authorised on behalf of accused company and not by any body from sister concern — PW 1 examined ... concern of accused company — It was for complainant to prove by cogent reliable evidence that acknowledgement issued on copy of ... by hand — Admittedly demand notice was not given to accused company on its registered office address but rather was addressed to sister ... There was absolut....
• India - Dishonour Of Cheque
ANIL R.DAVE, MUKUNDAKAM SHARMA
Both were sister concerns having common Directors. ... Ltd—Both were sister concerns having common Directors— Evidence on record that both the companies were having several transactions ... Said understanding was on account of the fact that directors in both companies were common and said companies were sister concerns ... Overseas Ltd. is a sister concern#HL_....
• India - Crimes
MUKUNDAKAM SHARMA, ANIL R.DAVE
Both were sister concerns having common Directors. ... Ltd-Both were sister concerns having common Directors- Evidence on record that both the companies were having several transactions ... Said understanding was on account of the fact that directors in both companies were common and said companies were sister concerns ... Overseas Ltd. is a sister concern#HL_....
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