2024 (6) TMI 84 - SCH - Indian Laws

Legality and validity of the non-bailable warrant, issued against the company - legality questioned on the ground that the company is in moratorium under the provisions of the Insolvency and Bankruptcy Code, 2016 and being a legal entity, cannot beprosecuted for the offence under Section 138 of the NI Act - HELD THAT - On the first day of hearing, when the notice was issued, the complainants had appeared by way of caveat. In such circumstances, let fresh notice be issued to the complainants returnable on 19 July 2024.

Summary

Issues involved: Challenge to the legality and validity of a non-bailable warrant issued against a company in moratorium under the Insolvency and Bankruptcy Code, 2016 for the offence under Section 138 of the Negotiable Instruments Act.

Upon hearing the counsel, the Court noted that the petitioner is the legal representative of the company facing a complaint under Section 138 of the NI Act. While the two Directors are facing trial, a non-bailable warrant was issued against the company. The petition challenges the warrant on the grounds that being in moratorium under the Insolvency and Bankruptcy Code, the company, as a legal entity, cannot be prosecuted for the said offence.

During the hearing, it was observed that the complainants did not appear before the Court. It was mentioned that on the first day of hearing, the complainants had appeared through caveat. In light of this, the Court directed for fresh notice to be issued to the complainants returnable on 19 July 2024.

The Court ordered that the fresh notice should be served through the Trial Court. Additionally, the interim order that was previously granted was directed to continue until further proceedings.