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MANJARI NEHRU KAUL
Charanbir Singh Sethi – Appellant
Versus
Pooja Sharma – Respondent
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 'Corporate Debtor'). Learned counsel contends that prior to the institution of the complaint in question, proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2019 (hereinafter referred to as 'the IBC') had been instituted against the Corporate Debtor and Corporate Insolvency Resolution Process (hereinafter referred to as 'CIRP'), as per the provisions of the IBC, ha
(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 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....
(1) Negotiable Instruments Act, 1881 – Section 138/141 – Insolvency and Bankruptcy Code, 2016 – Section 14 – Dishonour of cheque – Moratorium – Section 138/141 proceeding against a corporate debtor i....
The moratorium provision under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not apply to the natural persons mentioned in Section 141(1) and (2) of the Negotiable Instruments Act.
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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