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TMI Blog2023 (1) TMI 1453X X X X Extracts X X X X X X X X Extracts X X X X ..... 881 (for short "NI Act") initiated by respondent no. 1, National Spot Exchange Limited (for short "NSEL"). Stay of the proceedings was sought relying on the provisions of Section 96 of the Insolvency and Bankruptcy Code, 2016 (for short "IBC"). 4. The applicant in all these applications, is an accused no. 5 in the proceedings under Section 138 of NI Act. She had, in a capacity as the Director (Ex), signed the cheques issued in favour of the respondent-NSEL towards discharge of liability incurred by M/s. P. D. Agro Processors Private Limited (for short "PDAPPL") (accused no. 1 in the proceedings under Section 138 of NI Act). 5. It is the case of respondent-NSEL that it is a company incorporated under the provisions of Companies Act, 1956. It carries on business as a spot exchange providing for an electronic trading platform for spot contracts in commodities on a compulsory delivery basis. PDAPPL was a trading-cum-clearing member of NSEL. Accused nos. 2 to 4 in the proceedings, were its Directors. The applicant herein i.e. accused no. 5, was its Exdirector. All of them were In-charge of the day to day business of PDAPPL. They signed at the relevant time, the documents pertaining to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... j and Others v/s. Shah Brothers Ispat Private Limited (supra) is quite distinguishable on facts. The issue involved therein pertained to a question of moratorium under Section 14 of IBC. He would further submit that the applicant herein had taken exception to the order of issuance of process. She has been unsuccessful in those proceedings before this Court and the Hon'ble Apex Court as well. This Court vide its order dated 06/04/2022 in Criminal Application No. 109/2020 and connected applications observed, "Since the cases are of 2013/2014, the trial of the said cases are expedited. The learned Judge to conclude the case expeditiously and in any event, within 12 months from the date of receipt of this order." 11. Learned Advocate for respondent-NSEL reiterated that since the respondent-NSEL was not a party to the proceeding under Section 95 of IBC, the effect of Section 96 of IBC has no application to the proceedings under Section 138 of NI Act pending before learned Metropolitan Magistrate. He therefore urged for rejection of the applications. 12. Before adverting to the issue involved in these applications, it needs to be stated that the applicant had taken exception to the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing done directly or indirectly. This, coupled with the fact that the section is not limited to "recovery" of any debt, would indicate that any legal proceeding even indirectly relatable to recovery of any debt would be covered. 36 - For all these reasons, therefore, given the object and context of Section 14, the expression "proceedings" cannot be cut down by any rule of construction and must be given a fair meaning consonant with the object and context. It is conceded before us that criminal proceedings which are not directly related to transactions evidencing debt or liability of the corporate debtor would be outside the scope of this expression. 37 - V. Ramakrishnan Looked at and contrasted Section 14 with Sections 96 and 101 from the point of view of a guarantor to a debt, and in this context, held : We are also of the opinion that Sections 96 and 101, when contrasted with Section 14, would show that Section 14 cannot possibly apply to a personal guarantor. When an application is filed under Part III, an interimmoratorium or a moratorium is applicable in respect of any debt due. First and foremost, this is a separate moratorium, applicable separately in the case of pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s admitted under section 100 of IBC, moratorium shall commence in relation to all the debts and shall cease to have effect at the end of the period of 180 days beginning with the date of admission of the application or on the date, the Adjudication Authority passes an order on the repayment plan under Section 114 of IBC, whichever is earlier. 20. In view of Sub-section (2) of Section 101 of IBC, during the moratorium period any pending legal action or proceeding in respect of any debt shall be deemed to have been stayed. Then Section 102 of IBC speaks of issuance of public notice and claims from creditors. For better appreciation, Section 102(1) is reproduced, which reads thus :- "102 - Public notice and claims from creditors - (1) - The Adjudicating Authority shall issue a public notice within seven days of passing the order under Section 100 inviting claims from all creditors within twenty-one days of such issue." 21. It is true that respondent-NSEL is not a party to the application moved under Section 95 of IBC. The terminology of clause (b) of Section 101(2) of IBC unequivocally suggests that any pending legal action or proceeding pending in respect of any debt shall be dee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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