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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 ..... ember (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') before the Metropolitan Magistrate 59th Court, Kurla, Mumbai. CC No.552/SS/2017 was filed prior to initiation of Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant and sheer misuse of the process of law. 2. The question arises for consideration in this appeal is whether the order of moratorium will cover a criminal proceeding under Section 138 of NI Act, which provides punishment of imprisonment for a term which may extend to three years or with fine which may extend to twice the amount of cheque or with both? 3. The Company cannot be imprisone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be." 5. Learned counsel appearing on behalf of the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 14. Infact no criminal proceeding is covered under Section 14 of I&B Code. 7. The Adjudicating Authority having failed to appreciate law, we have no option but to set aside the impugned order dated 24th May, 2018 passed in MA/102/IB/2018 in CP/507/IB/2017. The court of competent jurisdiction may proceed with the proceeding under Section 138 of NI Act, even during the period of morato ..... X X X X Extracts X X X X X X X X Extracts X X X X
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