Supreme Court stays criminal case against cash-strapped Subhiksha

New Delhi: The Supreme Court on Thursday has stayed the criminal proceedings initiated by Kotak Mahindra Bank against cash-strapped retailer Subhiksha Trading Services in a cheque bounce case.

Subhiksha was forced to shut all of its stores following a cash crunch and has since been the target of a series of litigations, mostly filed by lenders and investors. The troubled retail chain owes Rs 750 crore to 13 banks.

A bench headed by Justice Markandey Katju while seeking reply from the bank and the Maharashtra government also stayed the criminal proceedings before the Metropolitian magistrate, Mumbai.

Kotak Mahindra had filed a complaint against Subhiksha and its Managing Director R Subramanium, General manager (Finance) K Balasubramanian and others in a Mumbai magistrate court after a Rs 35 crore cheque issued by Subiksha bounced in January last year.

Senior counsel Ashok Desai, appearing for Subhiksha, argued that the Mumbai court lacked territorial jurisdiction to entertain the complaint as no part of offence was committed in Mumbai conduct a trial against the retailer and its officials.

source :- retail news