Summoning order quashed, IRP in control post CIRP; Cheques dishonoured during moratorium, no vicarious liability for petitioners under NI Act.

The High Court quashed the summoning order and allowed the petition, ruling that once the Corporate Insolvency Resolution Process (CIRP) commences and an Interim Resolution Professional (IRP) is appointed under the Insolvency and Bankruptcy Code (IBC), control and management of the company vests with the IRP. Since the dishonoured cheques were issued after the moratorium, the petitioners cannot be held vicariously liable under Section 138 of the Negotiable Instruments Act. Consequently, proceedings under Section 138 cannot continue against the corporate debtor once a moratorium under Section 14 of the IBC is in effect. .....

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