9911796707
TMI Blog2021 (12) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... tiation of insolvency process by National Company Law Tribunal (NCLT) against the 1st petitioner Company and due to which, the 2nd accused / 2nd petitioner was unable to honor the post dated cheques issued in favour of the respondent Company. Inspite of the communication of the 1st petitioner Company regarding the insolvency process, the complainant has presented the cheques for collection, which was dishonored and thereby filed the complaint against the 1st petitioner Company. In the case on hand, the insolvency process was initiated by NCLT on 10.07.2017 and moratorium has been declared under the Insolvency Bankruptcy Code. Therefore, as held by the Hon'ble Supreme Court, the moratorium was only in respect of the corporate debtor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the file of the Court of Judicial Magistrate, Erode/Fast Track Court-II, and quash the same. 2. The case of the petitioner is that she is arrayed as one of the accused in cases pending before the Court of Judicial Magistrate, Erode/Fast Track Court-1 and before the Court of Judicial Magistrate, Erode/Fast Track Court-II, for the offences under Section 138, 141 and 142 of the Negotiable Instrument Act, 1881. The accused Company is running a leather business in the name and style of M/s.Nag India Pvt Ltd., As per the request of the petitioner Company, the complainant Company agreed to supply the ''Wet Blue Cow Hides'' and supplied the same. During the course of business, the accused Company was due and payable to the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LT, Chennai, had initiated insolvency proceedings against the accused Company. On 24.07.2017, a public announcement was issued by the Insolvency Resolution Professional, requesting all the financial creditors of the accused Company to submit their their proof of claims and further on the same day, the accused Company informed the respondent about the commencement of Corporate Insolvency Resolution Process and requested not to present the cheques. Inspite of that the complainant has presented the cheques for collection and filed the complaint, as if the accused company failed to settle their debts. In view of the commencement of insolvency proceedings against the accused Company, the complainant is not legally entitled to file a complaint be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Section 14 of the Insolvency Bankruptcy Code, would apply only to corporate debtor, the natural persons mentioned in Section 141 continuing to be statutorily liable under Chapter XVII of the Negotiable Instrument Act and, therefore, prays for dismissal of this petition with respect to petitioners 2 and 3. 7. This Court considered the rival submissions and also perused the materials available on record. 8. It is not in dispute that the cheques issued to the complainant's Company were dishonored with an endorsement ''Payment Stopped by the Drawers''. In that regard, the 1st petitioner Company had issued a letter to the respondent through their counsel stating about the initiation of insolvency process by National C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings can be initiated or continued against the persons mentioned in Section 141(1) and (2) of the Negotiable Instrument Act. This being the case, it is clear that the 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.'' 10. From a perusal of the above, it is evident that there is a categorical finding recorded by the Apex Court that the moratorium provision contained in Section 14 of the Insolvency Bankruptcy Code, would apply only to corporate debtor, the natural persons mentioned in Section 141 continuing to be statutorily liable under Chapter X ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Court below. 13. For the reasons aforesaid, these Criminal Original Petitions are allowed in respect of 1st petitioner is concerned and S.T.C.Nos.610/2017, 116/2018, 614/2017, 613/2017, 612/2017, 611/2017, 23/2018, 79/2018, pending on the file of the Court of Judicial Magistrate, Erode/Fast Track Court-1 and S.T.C.Nos.13/2018, 37/2018, 680/2018, 420/2018, 387/2018, 275/2018, on the file of the Court of Judicial Magistrate, Erode/Fast Track Court-II, are quashed. However, in respect of petitioners 2 and 3, this petition is disposed of directing the trial court to dispose of cases as expeditiously as possible as per seniority of the case. The petitioners and respondent are directed to co-operate with the trial court for the early comple ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
