FIRM A, a pvt limited firm & a susidiary of a PUBLIC Limited Co., placed an order for supply and manufacture of goods to FIRM B.

FIRM B supplied as per the order..........

IN between, FIRM A started having financial and fund-flow problems....could NOT make the payments.

On regular follow-up with FIRM A........they issued PDCs worth 2cr to FIRM B, with the condition that these PDCs should not be presented to Bank without their authorization.

Now, these PDCs have matured and due, BUT FIRM A has meantime issued instructions to its bank for STOP PAYMENT.

1. In such scenario, if FIRM B presents the PDCs and the same are NOT honored, will it amount to invoking section 138 of NIA.

2. .Does their communication NOT to present the PDCs without their authorisation give them UNDUE benefit / immunity from having committed a criminal offence u/s 138 of the NIA? or let me put it another way....does this weaken the case for FIRM B?