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TMI Blog2018 (7) TMI 2047X X X X Extracts X X X X X X X X Extracts X X X X ..... laim or recovery against the Corporate Debtor nor order of imprisonment, if passed by the court of competent jurisdiction on the Directors, they cannot come within the purview of Section 14. Infact no criminal proceeding is covered under Section 14 of I B Code. Appeal allowed. - Company Appeal (AT) (Insolvency) No. 306 of 2018 - - - Dated:- 31-7-2018 - Justice S. J. Mukhopadhaya, Chairperson Justice Bansi Lal Bhat Member (Judicial) For Appellant: Mr. Sulabh Rewari and Ms. Neha Mathen, Advocates For Respondents: Mr. Yugal Kishore Prasad and Mr. Sunil Prem Lalla, Advocates. ORDER The Appellants filed complaint under Section 138 of the Negotiable Instrument Act, 1881 (for short NI Act ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdiction on the Company (Corporate Debtor), if find guilty. The Directors of the Company (Corporate Debtor) being parties so can be imprisoned or fine may be imposed on them. 4. Section 14 of the Insolvency and Bankruptcy Code, 2016 (for short I B Code ) relates to moratorium, which reads as follows: 14. Moratorium.-(1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely:- (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be. 5. Learned counsel appearing on behalf of the Respondent submitted that the proceeding under Section 138 of the NI Act is covered by clause of Sub-section (1)(a) of Section 14 of I B Code, therefore, proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority cannot proceed. 6. We do not agree with such submission as Section 138 is a penal provision, which empowers the court of competent jurisdiction to pass order of imprisonment or fine, which cannot be held to be proceeding or any judgment or decree of money claim. Imposition of fine cannot held to be a money claim or recovery against the Corporate Debtor nor orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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