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IN THE HIGH COURT OF ALLAHABAD
Hon'ble Vikas Budhwar,J.
Mohnish Jain – Appellant
Versus
State of U.P. – Respondent
| Table of Content |
|---|
| 1. the court discusses the procedural aspects of the applications. (Para 1 , 2) |
| 2. factual background regarding the dishonor of cheques and subsequent legal actions. (Para 3 , 4 , 5) |
| 3. interim orders and proceedings related to the applications. (Para 6 , 7) |
| 4. arguments presented by the applicants regarding the maintainability of the complaint. (Para 8 , 9 , 10) |
| 5. arguments presented by the opposite party regarding the authority to file the complaint. (Para 11 , 12) |
| 6. court's observations on the legal principles governing partnership and authority. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 24 , 25 , 26 , 27) |
| 7. analysis of the legal implications of the complaint under the negotiable instruments act. (Para 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55) |
| 8. the court's ruling regarding the applications and the implications of the ibc. (Para 56 , 57 , 58) |
| 9. final observations and conclusion of the court. (Para 59 , 60 , 61) |
| 10. conclusion and dismissal of the applications. (Para 62) |
JUDGMENT :
Vikas Budhwar, J.
1. Impugned in the present proceedings by way of leading applic
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 ....
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.
Directors cannot be prosecuted under Section 138 of the NI Act without the company being joined as an accused, as vicarious liability requires the company to be a party to the proceedings.
IBC moratorium applies solely to corporate debtor, not shielding directors from Section 138 NI Act criminal proceedings, which continue independently despite company liquidation.
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 – For fastening criminal liability, there is no legal requirement for complainant to show that accused partner of firm was aware about each and every tran....
The moratorium provisions under Section 14 IBC apply only to the corporate debtor, and natural persons continue to be liable under the NI Act, and personal insolvency proceedings do not absolve natur....
Prosecution against a partner of a partnership firm under Section 138 of the N.I. Act is not maintainable without including the firm as an accused, affirming the principle of vicarious liability.
(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....
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