Order

30/04/2024

1. In all four criminal misc. petitions u/s. 482 Cr.PC, a common issue has been raised by petitioner, claiming to put on halt the criminal proceedings against him for offence under Section 138 NI Act, due to invocation of moratorium under the Insolvency and Bankruptcy Code, 2016 (hereinafter for short “the IBC 2016, hence with consent of counsel for both parties, all petitions have been heard together finally on merits and would stand decided by this common Order.

2. It is not in dispute that against petitioner four different criminal complaints under Section 138 NI Act, have been filed on account of dishonour of cheques issued by the petitioner, wherein cognizance for offence u/s. 138 NI Act has been taken by the Judicial Magistrate against the petitioner and trial in the criminal complaints is yet to commence. Indisputably, the criminal complaints are pending before the Special Metropolitan Magistrate, dealing with cases under the NI Act.

3. During course of criminal complaints under Section 138 NI Act, according to the petitioner, a moratorium period started as declared by the National Company Law Tribunal, Jaipur (hereinafter for short “the NCLT”) initially vide interim order dated 01.09.2021 and then vide final order dated 30.05.2022, hence during such period when the moratorium period is in effect, legal proceedings in respect of any debt against petitioner shall be deemed to have been stayed and therefore, for such reason, prayer of petitioner is to stay the proceedings in criminal complaints under Section 138 NI Act against the petitioner sine die, due to invocation of moratorium as per Section 101 of IBC

2016.

4. From the record of present petitions, it appears that in three petitions bearing S.B. Criminal Miscellaneous (Petition) Nos. 51/2023, 65/2023 and 66/2023, this Court vide order dated 16.01.2023 stayed further proceedings of criminal complaints under Section 138 NI Act, taking into consideration the declaration of moratorium period by the NCLT vide order dated 30.05.2022. No interim stay order has been passed in S.B. Criminal Miscellaneous (Petition) No. 2125/2023.

5. It has been pointed out by the counsel for respondents- complainants that the period of moratorium as declared vide order dated 30.05.2022 by the NCLT, was only for 180 days as provided under Section 101 of IBC 2016, and that period has come to an end, therefore, the prayer of petitioner to stay the further proceedings of criminal complaints under Section 138 NI Act, due to invocation of moratorium, has rendered infructuous and in such view, interim stay order dated 16.01.2023 be vacated and petitions be dismissed.

6. In counter, counsel for petitioner does not dispute the fact that moratorium period under the order dated 30.05.2022 was declared for 180 days only, which period has expired, however, he claims that the moratorium period be treated as continue even thereafter, in the light of Section 124 of the IBC 2016. However, it is noteworthy that no such claim has been pleaded by petitioners in these petitions.

7. Learned counsel for petitioner, after arguing the petitions for some time on merits, sought instructions from the petitioner and prayed not to press these petitions due to expiry of 180 days as declared by the NCLT vide order dated 30.05.2022, however, seeks liberty that contention of petitioner, claiming continuation of the period of moratorium even after the expiry of 180 days, may be kept alive so as to be raised by way of appropriate legal proceedings.

8. In such view of matter, without adverting to merits of the case, all four petitions are hereby dismissed as not press with the liberty as prayed by counsel for petitioner. It would be open for the respondents-complainants to contest the issue, if raised by the petitioner.

9. In view of dismissal of all four petitions, interim stay order dated 16.01.2023, staying further proceedings of criminal complaints under Section 138 NI Act, comes to an end and stay applications are