JIK INDUSTRIES LTD. vs AMARLAL V.JUMANI

The Supreme Court addressed the interpretation of Section 138 and Section 141 of the Negotiable Instruments Act, 1881, in relation to the sanctioning of a scheme under Section 391 of the Companies Act, 1956. The Court held that the sanctioning of such a scheme does not equate to the compounding of an offence under the N.I. Act, and that it does not terminate ongoing complaint proceedings. The judgment clarified that dissenting creditors retain the right to file complaints under Section 138 for pre-compromise debts, thereby upholding the High Court's dismissal of the writ petitions.