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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
RAKESH KAINTHLA
Ram Hari Motors Pvt. Ltd. – Appellant
Versus
State Bank of India – Respondent
| Table of Content |
|---|
| 1. cheque dishonour; ni s.138 complaint; partial ibc stay (Para 1 , 2 , 3 , 4 , 5) |
| 2. quash cognizance; extend ibc stay to directors (Para 6 , 8) |
| 3. bhajan lal guidelines for quashing proceedings (Para 7 , 10 , 11 , 12 , 13) |
| 4. moratorium inapplicable to natural persons (Para 9) |
| 5. ibc moratorium excludes ni s.138 against directors (Para 14 , 15) |
| 6. delay laches bar late quashing under s.482 (Para 16 , 17 , 18) |
| 7. petitions dismissed; trial continues (Para 19 , 20) |
JUDGMENT :
Rakesh Kainthla, J.
The petitioners have filed the present petitions for quashing the orders dated 12.08.2024 passed by learned Chief Judicial Magistrate, Mandi, District Mandi, H.P. (learned Trial Court) vide which the applications filed under Section 14(1) and Section 101 of the Insolvency and Bankruptcy Code, 2016 (IBC) for stay of proceedings were partly allowed. (Parties shall hereinafter be referred to in the same manner as they were arrayed before the learned Trial Court for convenience.)
2. Briefly stated, the facts giving rise to the present petitions are that the complainant filed a complaint before the learned Trial Court against the accused for the commission of an offence punishable under Se
IBC moratorium applies solely to corporate debtor, not shielding directors from Section 138 NI Act criminal proceedings, which continue independently despite company liquidation.
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.
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 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....
(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 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....
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.
The imposition of moratorium under Sec. 14 of the I.B. Code applies to the corporate debtor, while the natural persons mentioned in Sec. 141 of the N.I. Act continue to be statutorily liable.
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