Back
PANKAJ JAIN
Shiva Shakti Grains (India) Pvt Ltd – Appellant
Versus
Kaur Chand Munish Kumar – Respondent
JUDGMENT
Pankaj Jain, J.
By way of this common order I intend to dispose off the bunch of afore-captioned 39 petitions.
2. Petitioners herein are Company as well as Directors of the Company who have been summoned by issuance of process to stand trial in the complaint cases for offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the N.I. Act'). The petitioners invoked jurisdiction of this Court under Section 482 of the Code of Criminal Procedure, 1973 seeking quashing of criminal complaints as well as the summoning orders.
3. Initially the ground pressed into service was on facts claiming that the complaints are abuse of process of law. The cheques on the basis of which complaints have been filed are all security cheques, which were lying with the commission agents and have been misused. Lateron, application was filed under Section 482 of the Code to submit that subsequent to the filing of the instant petition(s) creditors have initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 2016 Code'). The application was admitted to Corporate Insolvency Resolution Process on 8th of Ju
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.
(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 from criminal liability under the Negotiable Instruments Act for cheque dishonour.
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.
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 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 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....
Section 32A of the IBC extinguishes criminal liability for the corporate debtor post-resolution but not for directors under Section 138 of the NI Act.
A partner of a firm can file a complaint under Section 138 of the Negotiable Instruments Act if authorized, as they act as agents of the firm, and the moratorium under IBC does not protect directors ....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
