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2024 (6) TMI 749 - HC - Indian LawsIssues involved: Application u/s 482 of Cr.P.C. seeking to call for records, quash deposit condition, and other reliefs in a case involving conviction under Section 138 of Negotiable Instruments Act and insolvency proceedings under Insolvency and Bankruptcy Code, 2016. Summary: The applicant was convicted under Section 138 of the Negotiable Instruments Act and directed to undergo a jail sentence with compensation. The applicant, being the Guarantor of a company undergoing insolvency proceedings, argued that the initiation of insolvency proceedings under the Code, 2016 should prevent the recovery of debts. The applicant relied on relevant case laws to support their contentions. The Supreme Court clarified that proceedings under the Insolvency and Bankruptcy Code do not automatically extinguish criminal proceedings under the Negotiable Instruments Act. The Court emphasized that the nature of these proceedings is different and that personal liability of individuals involved in financial defaults cannot be absolved solely due to corporate insolvency. The Court held that the conviction and deposit condition imposed were valid, considering the liabilities under both laws. In conclusion, the Court found no grounds to interfere with the conviction or the deposit condition, as the initiation of insolvency proceedings did not exempt the applicant from personal liability. The application was dismissed accordingly.
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