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IN THE HIGH COURT OF DELHI AT NEW DELHI
AMIT MAHAJAN
Somwati – Appellant
Versus
Suresh Jain – Respondent
| Table of Content |
|---|
| 1. allegations of dishonored cheques. (Para 2 , 3 , 4) |
| 2. initiation of insolvency proceedings. (Para 5 , 6) |
| 3. arguments against adjournment of cases. (Para 8 , 9 , 10 , 11 , 12) |
| 4. interpretation of section 96 of the ibc. (Para 15 , 18 , 19) |
| 5. distinction between criminal and civil actions. (Para 20 , 21) |
| 6. criminal liability under section 138 of ni act. (Para 26 , 27 , 28) |
| 7. setting aside of impugned orders. (Para 29 , 30 , 31 , 32) |
JUDGMENT :
AMIT MAHAJAN, J.
1. The present petitions are filed under Section 528 of the Bhartiya Nagarik Suraksha Sanhita, 2023 seeking quashing of the orders dated 08.01.2025 passed by the learned Magistrate, Tis Hazari Courts, Delhi in CC No. 3480/2021 and 3481/2021 (hereafter ‘impugned orders’) whereby the complaints filed by the petitioners under Section 138 of the Negotiable Instruments Act, 1881 were adjourned sine die after allowing applications of the respondent under Sections 96 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’).
2. Briefly stated, the petitioner in allegedly advanced a friendly loan to the respondent and for the purposes of securing the said loan the respondent had issued a cheque bearing no. 175894 dated 12.03.
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 interim moratorium under the Insolvency and Bankruptcy Code does not protect individuals from criminal liability for dishonouring cheques under the Negotiable Instruments Act.
The moratorium under the Insolvency and Bankruptcy Code does not protect individuals from criminal liability under the Negotiable Instruments Act for cheque dishonour.
IBC moratorium applies solely to corporate debtor, not shielding directors from Section 138 NI Act criminal proceedings, which continue independently despite company liquidation.
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....
(1) Dishonour of cheque – Offence by company – By operation of provisions of IBC, criminal prosecution initiated against the natural persons under Section 138 read with 141 of NI Act read with Sectio....
The moratorium under the IBC does not protect directors from criminal liability under Section 138 of the N.I. Act, as these proceedings are distinct from civil recovery actions.
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