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TMI Blog2022 (4) TMI 1153X X X X Extracts X X X X X X X X Extracts X X X X ..... used. It must therefore be held that the corporate debtor, namely, the appellant herein cannot now be proceeded against under Section 138 of the Act. Consequently, the proceedings initiated against the appellant deserve to be quashed - Appeal allowed. - CRIMINAL APPEAL NO.1424 OF 2021 (Arising out of SLP (Crl.) No.9077 of 2019) - - - Dated:- 18-11-2021 - UDAY UMESH LALIT AND S. RAVINDRA BHAT, JJ. ORDER Leave granted. This appeal challenges the judgment and order dated 02.04.2019 passed by the High Court of Judicature at Madras in Crl. O.P. No.8869 of 2018. The appellant preferred aforestated Criminal Original Petition under Section 482 of the Code of Criminal Procedure, 1973 ( the Code for short) seeking quashing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st this Court. Pursuant to said order, Mr. Tushar Mehta, learned Solicitor General has appeared and assisted this Court. During the pendency of the instant matter, the question as to the nature of the liability of a corporate debtor in respect of proceedings initiated under Section 138 of the Act, after the issuance of the moratorium, was considered by a three Judge Bench of this Court in P. Mohanraj Others v. Shah Brothers Ispat Private Ltd., (2021) 6 SCC 258, and the conclusions drawn by this Court were as under: 103. In conclusion, disagreeing with the Bombay High Court and the Calcutta High Court judgments in Tayal Cotton (P) Ltd. v. State of Maharashtra, 2018 SCC OnLine Bom 2069 : (2019) 1 Mah LJ 312 and MBL Infrastructions Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeded against under Section 138 of the Act. Consequently, the proceedings initiated against the appellant deserve to be quashed. Since no natural person was arrayed as accused, the exception carved out in the decision of this Court in P. Mohanraj (supra) does not arise in the instant case. The appeal is thus allowed. The decision under challenge is set-aside; the Criminal Original Petition preferred by the appellant under Section 482 of the Code is allowed and the proceedings against the appellant are quashed. In the end, we must express our sincere appreciation and gratitude for the assistance rendered by Mr. Tushar Mehta, learned Solicitor General. With these observations, the appeal is allowed. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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