Jik Industries Ltd. & Ors vs Amarlal V.Jumani & Anr

The Supreme Court held that the sanction of a scheme under Section 391 of the Companies Act, 1956 does not equate to compounding an offence under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881. The Court clarified that an unsecured creditor's non-opposition to a scheme does not preclude them from filing a criminal complaint for pre-compromise debts. The High Court's dismissal of the writ petitions was upheld, affirming that the complaint proceedings under the N.I. Act remain unaffected by the scheme's sanction.