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R. G. AVACHAT
Sheetal Gupta – Appellant
Versus
National Spot Exchange Limited – Respondent
JUDGMENT
1. Heard.
2. These applications are being decided by this common order since common questions of fact and law arise therein. Moreover, the proceedings are between the same parties.
3. The challenge in these applications, under Sec. 482 of the Code of Criminal Procedure, 1973 (for short "Cr.P.C."), is to the order/s refusing to stay the proceedings under Sec. 138 of the Negotiable Instruments Act, 1881 (for short "NI Act") initiated by respondent no. 1, National Spot Exchange Limited (for short "NSEL"). Stay of the proceedings was sought relying on the provisions of Sec. 96 of the Insolvency and Bankruptcy Code, 2016 (for short "IBC").
4. The applicant in all these applications, is an accused no. 5 in the proceedings under Sec. 138 of NI Act. She had, in a capacity as the Director (Ex), signed the cheques issued in favour of the respondent-NSEL towards discharge of liability incurred by M/s. P. D. Agro Processors Private Limited (for short "PDAPPL") (accused no. 1 in the proceedings under Sec. 138 of NI Act).
5. It is the case of respondent-NSEL that it is a company incorporated under the provisions of Companies Act, 1956. It carries on business as a spot exchange providing
The main legal point established in the judgment is that the proceedings under Sec. 138 of NI Act are covered by the term 'any legal action or proceeding pending in respect of any debt' appearing in ....
The moratorium provisions under Section 14 IBC apply only to the corporate debtor, and natural persons continue to be liable under the NI Act, and personal insolvency proceedings do not absolve natur....
The interim moratorium under the Insolvency and Bankruptcy Code does not protect individuals from criminal liability for dishonouring cheques under the Negotiable Instruments Act.
The IBC's moratorium does not prevent criminal prosecution under Section 138 of the NI Act; personal liability remains intact despite insolvency proceedings.
The court ruled that proceedings under Section 138 of the NI Act are penal and cannot be stayed by the interim moratorium under Section 96 of the IBC, affirming the distinction between criminal and c....
The moratorium under the Insolvency and Bankruptcy Code does not protect individuals from criminal liability under the Negotiable Instruments Act for cheque dishonour.
The moratorium under the Insolvency and Bankruptcy Code does not protect individuals who are directors or guarantors of a corporate debtor from criminal proceedings under the Negotiable Instruments A....
IBC moratorium applies solely to corporate debtor, not shielding directors from Section 138 NI Act criminal proceedings, which continue independently despite company liquidation.
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