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TMI Blog2022 (6) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... the Accused No.2 (1st Petitioner herein), is the Managing Director and the Accused No.3 (2nd Petitioner herein) is a Director. Both the Petitioners are taking active part in the conduct, business and day to day affairs of 1st accused company. 1st Accused Company borrowed an amount Rs.27,00,000/- in the month of February 2016 from the complainant. However, they have postponed the repayment as told and agreed to repay. Only in the month of February 2018, when the complainant approached and insisted the accused for repayment, the 2nd and 3rd accused represented by the 1st accused company issued three cheques in question drawn on State Bank of India, Tiruchengode Branch, dated 19.04.2018, each for Rs.9 lakhs. When the cheques were presented for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, employees and workmen of the corporate debtor. Therefore, it is his contention that when the cheques in question were issued on 19.04.2018, the complaint lodged thereafter, that too much after the moratorium was enforced and Resolution Professional was appointed, the prosecution under Section 138 of Negotiable Instruments Act is not maintainable and the same is liable to be quashed. 4. Learned counsel appearing the for the defacto complainant Mr.N. Manoharan submitted that the chques in question were issued in the year 2016. Even the Petition filed before this Court to quash the proceedings itself indicate that the cheque was issued prior to the Corporate Insolvency Resolution process. Hence, submitted that bar under Section 14 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... National Company Law Board Tribunal (NCLT) on 13.06.2017. Thereafter Resolution Professional was also appointed. 7. It is relevant to note that Section 17 (b) of the Insolvency and Bankruptcy Code, 2016, makes it very clear that once interim resolution professional is appointed, the powers of the Board of Directors or the partners of the corporate debtor shall stand suspended and be exercised by the interim resolution professional. 8. Similarly, Section 33 particularly, sub-clause (7) of Section 33 of the Code makes it very clear that when the order of liquidation is passed, it is deemed to be notice of discharge to the officers, employees and workmen of the corporate debtor, except when the business of the corporate debtor is continued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lear 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.'' In such a view of the matter, the petitioners being the directors of the company, have to be prosecuted as per the above judgment. 11. The Apex Court in Bir Singh vs. Mukesh Kumar [Crl.A.No.230-231 of 2019 dated 06.02.2019 - Supreme Court] in paragraphs 37 and 38 has held as follows: " 37. A meaningful reading of the provisions of the Negotiable Instruments Act including, in particular, Sections 20, 87 and 139, makes it amply clear that a person who signs a cheque and makes it over t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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