Back
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
MANDEEP PANNU
Anil Kumar – Appellant
Versus
Brij Lal Ashok Kumar – Respondent
JUDGMENT :
MANDEEP PANNU, J.
1. The present petition has been filed under Section 482 of the Code of Criminal Procedure seeking quashing of criminal complaint bearing No. NACT No. 8909 of 2018 dated 29.08.2018, titled as M/s Brij Lal Ashok Kumar vs. Tara Chand Rice Mills and another, under Section 138 of the Negotiable Instruments Act, 1881, as well as the summoning order dated 13.10.2018 passed by the learned Judicial Magistrate Ist Class, Faridabad.
2. Briefly stated, the case of the complainant is that on the request of the accused, the complainant firm supplied paddy from time to time commencing from 21.10.2014 to 03.01.2016, against which invoices were raised and payments partly made, and a running account was maintained. As per the said account, an amount of Rs. 2,23,89,593/- was outstanding as on 31.12.2017. Thereafter, a settlement was arrived at between the parties on 16.03.2018, pursuant to which the accused paid a sum of Rs. 25 lakhs and issued five post-dated cheques, namely cheque No. 244591 dated 15.06.2018 for Rs. 40,00,000/-, cheque No. 244592 dated 15.09.2018 for Rs. 40,00,000/-, cheque No. 244593 dated 15.12.2018 for Rs. 40,00,000/-, cheque No. 244594 dated 15.03.20
Individual directors remain liable for dishonoured cheques even after a corporate debtor enters insolvency, as personal criminal liability under the NI Act persists irrespective of corporate status.
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 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.
Personal penal liability of corporate directors persists notwithstanding the entity's insolvency, allowing continuance of N.I. Act proceedings.
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
