Developments On Dishonored Checks Issued During Composition Proceedings

Recent Development

The 19^th Criminal Chamber of the Court of Cassation resolved the contradictory approach of different criminal chambers of regional appellate courts on the criminal liability of legal entity representatives for issuing checks that were dishonored during composition proceedings in its decision dated 10 June 2019 and No. 2019/23974-2019/9339 ("Decision"). In its decision, the Court of Cassation set forth the principles for courts when issuing a decision on the criminal liability of representatives of a legal entity for issuing a postdated check prior to a composition application or a court-granted temporary composition period, and the postdated check resulted to be a dishonored check while the composition proceedings was underway, despite being addressed in the composition project and recorded in the legal entity's commercial books and records.