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MANJARI NEHRU KAUL
Charanbir Singh Sethi – Appellant
Versus
Pooja Sharma – Respondent
| Table of Content |
|---|
| 1. quashing of complaint under ni act (Para 1 , 2) |
| 2. protection under ibc and consequences of moratorium (Para 3 , 4 , 5 , 6 , 7 , 8 , 9) |
| 3. court's observation on statutory liability (Para 10 , 11) |
| 4. evaluation of proceedings under ni act and ibc (Para 12 , 13 , 14 , 15 , 16) |
| 5. duty to issue notice under ni act (Para 17 , 18 , 19) |
| 6. dismissal of petitions (Para 20) |
JUDGMENT
Mrs. Manjari Nehru Kaul, J. (Oral)
This order shall dispose of above mentioned two petitions as they arise out of the same complaint and impugned orders.
2. The petitioners are seeking quashing of Complaint bearing NACT No.68 of 2020 dated 24.01.2020 titled as 'Pooja Sharma v. C & C Towers Ltd. and others' (Annexure P-2) filed under Section 138 of the Negotiable Instruments Act, 1881 (for short, 'the NI Act') by respondent No.1-complainant, pending before learned Judicial Magistrate 1st Class, Khanna, District Ludhiana, summoning order dated 03.09.2021 (Annexure P-1) and bailable warrants issued vide order dated 22.03.2023 (Annexure P-5).
3. Learned counsel for the petitioners submits that the petitioners are Directors of M/s C & C Towers Limited, respondent No.3 company (hereinafter referred as to
The interim moratorium under the Insolvency and Bankruptcy Code does not protect individuals from criminal liability for dishonouring cheques under the Negotiable Instruments Act.
(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....
IBC moratorium applies solely to corporate debtor, not shielding directors from Section 138 NI Act criminal proceedings, which continue independently despite company liquidation.
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 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 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....
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