A Supreme Court Bench has recused from hearing cash-strapped retailer Subhiksha's petition seeking a stay on criminal proceedings initiated against it for dishonouring a cheque issued to Kotak Mahindra Bank.
A Bench of Justices Markandey Katju and Gyan Sudha Mishra has opted out of hearing the plea filed by Subhiksha.
"List before another Bench to be nominated by the Chief Justice of India," the Bench said.
Kotak Mahindra Bank had filed a criminal case against the retailer, its Managing Director R Subramaniam and two others in 2009. According to the bank, a cheque issued by Subhiksha worth Rs 35 crore bounced due to lack of funds in the company's account.
Earlier on September 10 last year, the Supreme Court had stayed the orders of the Bombay High Court, which had declined to stay criminal proceeding initiated in the local magistrate's court on the complaint by Kotak Mahindra Bank.
"Until further orders, the operation of the impugned judgement and final order dated September 1, 2010 passed by the High Court of Bombay shall remain stayed," the apex court had said.
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The company and its officials had contended that as the company was based in Tamil Nadu, the case is beyond territorial limits.
This was challenged by the retailer before the Bombay High Court, which on September 1, 2010, declined to stay the criminal proceedings before the magistrate's court.