Southern Steel Ltd. & Others vs Jindal Vijayanagar Steel Ltd

The Supreme Court upheld the High Court's dismissal of the appellants' petitions to quash criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881, emphasizing that the appellants, having made purchases after being declared a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), could not evade liability. The Court reiterated that the High Court had the discretion to quash proceedings but found no grounds to do so in this case. The judgment reinforces the principle that representation made during transactions must be honored, even in the context of a company declared sick under SICA.