IMPORTANT POINT
The main legal point established in the judgment is that the moratorium issued by the NCLT also covers criminal proceedings initiated under Section 138 of the Negotiable Instruments Act.

JUDGMENT :

1. By way of filing these Criminal Misc. Applications under Section 482 of the Criminal Procedure Code, the petitioners seek quash of criminal proceedings in Criminal Case Nos.1426, 1427, 1429 and 1428 of 2016 on the file of learned Chief Judicial Magistrate Court, Amreli, for the offence punishable under Section 138 of the Negotiable Instruments Act.

2. Heard learned counsel for the petitioner and learned APP for the respondent-State. Despite service of notice, none appeared for second respondent.

3. Since common issue involved in these matters, brief facts of the case relevant to dispose of these applications are taken from Criminal Misc. Application No.22170 of 2017, which may be stated as under:-

3.1 The second respondent is a company in the name and style of Sheetal Cool Products Limited. The first petitioner herein is also a company in the name of Wind Word (India) Limited and it is doing business of manufacturing and supplying wind turbine. The second respondent, who is the original complainant, has placed an order with the petitioner for supply of machines. Advance amount was paid for supply of the said machines at the time of placing the order. Thereafter, the first petitioner has supplied the machinery to the second respondent. As per the terms of their agreement, the machinery has to be supplied by the petitioner to the second respondent within stipulated time i.e. by 31.3.2016. The first petitioner could not supply part of the machinery within the time stipulated. Therefore, on the demand made by the second respondent, advance amount paid by the second respondent was returned by the first petitioner by way of issuing four post- dated cheques. The said cheques were presented to encash the same in the bank. They are dishonoured on the ground that there is insufficient fund in the bank account of the first petitioner.

3.2 After issuing notice and after complying with the procedure prescribed under the law, the second respondent filed a complaint under Section 138 of Negotiable Instruments Act against the first petitioner and its directors, who are petitioner nos. 2 to 5 on the file of the learned Chief Judicial Magistrate Court, Amreli.

3.3 During the pendency of the said complaint, it appears that the parties have entered into compromise as per the consent terms dated 21.4.2017 and it is agreed that the petitioner shall pay a sum of Rs.1,35,00,000/- and Rs.10,000/- to the second respondent-complainant and, accordingly, they have paid the same. However, the second respondent claimed interest on the said amount. There was a dispute in this regard as the petitioners contend that there was no agreement for payment of any interest on it. Therefore, the offence could not be compounded in terms of Section 147 of the Negotiable Instruments Act.

3.4 At that stage, the petitioners have approached this Court by filing this application under Section 482 of CrPC stating that having received the aforesaid amount of money, as per their understanding, the second respondent is now not coming forward to compound the offence under Section 147 of the NI Act and it amounts to abuse of process of the Court to continue the said criminal proceedings against the petitioners under Section 138 of the NI Act.

4. During the pendency of these applications, certain subsequent events have taken place which are required to be noticed. The second respondent admittedly is a company incorporated. The creditors of the petitioner, which is also a company, approached the NCLT against the petitioner company. Moratorium proceedings were issued in the said proceedings by the NCLT. They are in force.

5. Learned Senior Counsel for the petitioner would contend that when the moratorium proceedings are initiated by the NCLT, all other proceedings relating to the said company including the proceedings under Section 138 of the NI Act shall be kept in abeyance till the said issue before the NCLT is resolved as per the law. In support of his contention that the mor