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2022 Supreme(Jhk) 653

IN THE HIGH COURT OF JHARKHAND, RANCHI
Sanjay Kumar Dwivedi, J.
Sunil Katiyal @ Sunil Katial, S/o. Late Harbans Lal Katiyal - Petitioner
Versus
The State of Jharkhand and Anr. – Opp. Parties
Cr. M.P. No. 2013 of 2021 with Cr. M.P. No. 3095 of 2019
Decided On : 06-07-2022

Advocates Appeared:
For the Petitioner: Mr. Indrajit Sinha, Mr. Bibhash Sinha.
For the Opp.Party : Mr. Shadab Eqbal.

The liability of a corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution plan ceases under Section 32A of the Insolvency and Bankruptcy Code, 2016.

Headnote:

Encroachment - Criminal Proceeding - Insolvency and Bankruptcy Code, 2016 - Section 32A - The court quashed the entire criminal proceeding initiated against the petitioners in connection with Complaint Case No.271 of 2018, including the order dated 18.09.2018, based on the fact that the liability of the corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution plan ceases under Section 32A of the Insolvency and Bankruptcy Code, 2016.

Fact of the Case:

The petitioners sought quashing of criminal proceeding initiated against them in connection with a complaint alleging encroachment of land by a company. The complaint was filed after a significant delay, and the resolution plan under the Insolvency and Bankruptcy Code, 2016 had been approved.

Finding of the Court:

The court found that the complaint was filed after a significant delay and that the liability of the corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution plan ceases under Section 32A of the Insolvency and Bankruptcy Code, 2016.

Issues: The issues revolved around the delay in filing the complaint, the approval of the resolution plan under the Insolvency and Bankruptcy Code, 2016, and the liability of the corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution plan.

Ratio Decidendi: The court's decision was influenced by the delay in filing the complaint, the approval of the resolution plan under the Insolvency and Bankruptcy Code, 2016, and the provisions of Section 32A of the said Code, which stipulates that the liability of a corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution plan shall cease.

Final Decision: The entire criminal proceeding in connection with Complaint Case No.271 of 2018, including the order dated 18.09.2018, was quashed by the court.

JUDGMENT :

1. Heard Mr. Indrajit Sinha, the learned counsel assisted by Mr. Bibhash Sinha, the learned vice counsel appearing on behalf of the petitioner and Mr. Shadab Eqbal, the learned counsel appearing on behalf of the O.P.No.2.

2. Since in both the petitions common complaint and the common facts are involved and as such with consent of the parties, both these petitions are being heard together.

3. In these petitions the petitioners have prayed for quashing of entire criminal proceeding initiated against the petitioners in connection with Complaint Case No.271 of 2018 including the order dated 18.09.2018, passed by learned Judicial Magistrate,1st Class, Bokaro, pending in that court.

4. The complaint has been filed alleging therein:

That the complainant and his brothers 1.Muslim Ansari, 2.Qasim Ansari, 3.Yasin Ansari and 4. Sakruddin Ansari had together sold their ancestral property acquired through registered deeds in Bhagaband Village No.83 Khata No.58, Khata No.59, pertaining to plot no.1189, 1120/1, 429, 1120/1430, Total Area 13.73 acres to M/s Electrosteel Steels Limited Siyaljori by registered deed and the agreement and possession was handed over;

It is further alleged that out of the above khatas and plots, land acquired under registered deed nos.6058 dated 15.07.1957, pertaining to plot nos.1180, 1120/1429, 1120/1430 total area 6.80 acres ½ (half) portion measuring 3.40 acres has been taken possession of by the said Elecrtrosteel Steel Limited Siyaljori Bokaro in connivance and in support of the above officers located on the western side of RMHS area over which the company is running its factory and earning lakhs of rupees. On demanding damages and compensation for the same, the security guards and employees have threatened and have driven them out. The accused persons namely 1.Sunil Katiyal, 2.G.D.Jalan, 3.Rama Shankar Singh, 4.Lakshminidhi, 5.V.S.Tiwari, 6.P.N.Pathak and 7.Randhir Singh have been falsely assuring that they will be compensated and given employment. In this way on 25.09.2012 the then officers of the Electrosteel Steel Limited Shri G.D. Jalan, accused no.2 had given to the complainant and his brothers, on the letter pad of Electrosteel Steel Limited a statement that 3 acres of land in khata no.58 is under their possession;

The 3 acres of land under their occupation, referred to in the certified copy is in fact more than 3 acres measures 3.40 acres and is under occupation of the company for which no compensation has been paid nor they intend to do so. In this way, at the prevailing market rate of Rs.10,000/- per decimal total Rs.34,00,000/- along with interest is payable but the said company is doing dilly dally;

The complainant has from time to time brought the above complainant against the company before the concerned Thana Incharge to S.P., Bokaro and to D.C., Bokaro, but in connivance with them, no legal action has been taken against the company or the said offices. Recently on 18.12.2017 the complainant has sent pleader’s notice to the company and the accused no.1 but till date no response has been received to the same;

On 10.3.2016 the accused no.1 Sunil Katiyal, accused no.3 P.N. Pathak and accused no.4 Randhir Singh called the complainant at Bhagaband Office at around 1.00 pm and all the said three persons slapped him and hit him and threatened that if any case is filed with respect of the land purchased through registered deed in plot nos.1180, 1120/1429, 1120/1430 in khata no.58 relating to 3.40 acres of land then the complainant would be killed and due to commotion the witness no.1 Atabuddin Ansari, 2.Naseem Ansari and 3.Abdul Ansari arrived and the accused persons left from there;

5. Due to fear the complainant has remained quite so far, ultimately after gather courage and due to the failure on the part of Thana Silayjori S.P. Bokaro and D.C., Bokaro to act on the complaint of the complainant, this complaint is being filed before the Court for obtaining justice.

6. Mr. Indrajit Sinha, the learned c

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