Section 14 – Negotiable Instruments Act, 1881 (26 of 1881), Section 138, 141 -- Moratorium period – Corporate debtor – Natural persons -- Criminal liability in cheque bounce case -- Since the corporate debtor would be covered by the moratorium provision contained in Section 14 of the IBC, by which continuation of Section 138/141 proceedings against the corporate debtor and initiation of Section 138/141 proceedings against the said debtor during the corporate insolvency resolution process are interdicted would then become applicable -- Moratorium provision contained in Section 14 of the IBC would apply only to the corporate debtor, the natural persons mentioned in Section 141 continuing to be statutorily liable under Chapter XVII of the Negotiable Instruments Act -- Section 138/141 proceeding against a corporate debtor is covered by Section 14(1)(a) of the IBC.

(SC) Decided on: 01.03.2021

Section 7 -- Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, Rule 4 -- Code of Criminal Procedure, 1973 (2 of 1974), Section 482 -- Cheque bounce case – Summoning of accused – Challenge to -- Insolvency proceedings – Effect of -- Account of the Company was frozen by virtue of orders dated 03.12.2018 passed by the NCLT -- All the moveable and immoveable assets of the Company have been taken over – Held, cheque in question is dated 12.06.2017, which was dishonoured on 29.07.2017 i.e. much prior to the passing of the order by the NCLT -- Even the legal notice dated 26.08.2017 served upon the petitioner is prior to commencement of IBC proceedings – Petitioner cannot thus take ruse under NCLT order passed after the institution of impugned complaint and passing of the summoning order

(P&H HC) Decided on: 29.09.2020