The High Court addressed issues regarding dishonour of cheques ...

Dishonour of cheque: Insolvency cheques, director liability, & IBC Section 14. Only corp debtors affected, no exoneration for individuals. Applicants innocent, complaint quashed.

Case Laws Indian Laws

June 29, 2024

The High Court addressed issues regarding dishonour of cheques during insolvency proceedings, vicarious liability of directors, and the application of Section 14 of the IBC Act. It held that Section 14 of the IBC Act applies to corporate debtors, not natural persons, and does not exonerate individuals from criminal liability u/s 138 of the N.I. Act. The court found that the applicants had no knowledge of issuing the cheques, as they had not signed them, and lacked specific status or role in the complaint. Thus, the court allowed the application to quash the complaint u/s 482 of the Criminal Procedure Code to prevent abuse of court process and secure justice.

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The High Court addressed issues regarding dishonour of cheques ...

Dishonour of cheque: Insolvency cheques, director liability, & IBC Section 14. Only corp debtors affected, no exoneration for individuals. Applicants innocent, complaint quashed.

Case Laws Indian Laws

June 29, 2024

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