In this case Pankaj Mehra and another appellant were directors of a company that issued a cheque dated October for The cheque was dishonored upon presentation on December due to ... insufficient funds A notice was issued to the company on December demanding payment Subsequently a complaint was filed against the company and its directors under Section of the Negotiable Instruments Act The appellants contended that since a winding-up petition had been filed against the company on May and a provisional liquidator was appointed on April the company was under winding-up proceedings They argued that any disposition of property including issuing cheques during this period was void under Section of the Companies Act and thus they should not be held liable under Section of the Negotiable Instruments Act

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