Extinguishment Of Debt Under IBC Will Not Lead To Discharge Of Criminal Charges Under Section 138 NI Act- SC Clarifies
Cause Title: Ajay Kumar Radheshyam Goenka vs Tourism Finance Corporation of India Ltd.
Case Title: Ajay Kumar Radheyshyam Goenka v Tourism Finance Corporation of India Ltd.Citation: 2023 LiveLaw (SC) 195Negotiable Instruments Act 1881 -Section 138- Approval of resolution plan of corporate debtor will not extinguish the liability of erstwhile director for dishnour of cheque- Para 17, 18 in judgment of Justice Kaul(for himself and Justice Oka) -Para 47,52 in concurring judgment of Justice PardiwalaInsolvency and Bankruptcy Code 2016- Section 31-Process under the IBC whether under Section 31 or Sections 38 to 41 cannot extinguish criminal proceedings under Section 138 NI Act 1881 against former directors of the corporate debtor- Para 18 in judgment of Justice Kaul(for himself and Justice Oka)-After passing of the Resolution Plan under Section 31 of IBC by the Adjudicating Authority and in the light of Section 32A of IBC, the criminal proceedings under Section 138 of the NI Act will stand terminated only in relation to the Corporate Debtor if the same is taken over by a new management- Para 86 in concurring judgment of Justice PardiwalaNegotiable Instruments Act 1881 -Section 138- Where the proceedings under Section 138 of the NI Act had already commenced and during the pendency the plan is approved or the company gets dissolved, the directors and the other accused cannot escape from their liability by citing its dissolution- Para 52 in Justice Pardiwala's judgmentNegotiable Instruments Act 1881 -Section 138-I am of the view that by operation of the provisions of the IBC, the criminal prosecution initiated against the natural persons under Section 138 read with 141 of the NI Act read with Section 200 of the CrPC would not stand terminated - Para 47
Case Title: Ajay Kumar Radheyshyam Goenka v Tourism Finance Corporation of India Ltd.Citation: 2023 LiveLaw (SC) 195Negotiable Instruments Act 1881 -Section 138- Approval of resolution plan of corporate debtor will not extinguish the liability of erstwhile director for dishnour of cheque- Para 17, 18 in judgment of Justice Kaul(for himself and Justice Oka) -Para 47,52 in concurring judgment of Justice PardiwalaInsolvency and Bankruptcy Code 2016- Section 31-Process under the IBC whether under Section 31 or Sections 38 to 41 cannot extinguish criminal proceedings under Section 138 NI Act 1881 against former directors of the corporate debtor- Para 18 in judgment of Justice Kaul(for himself and Justice Oka)-After passing of the Resolution Plan under Section 31 of IBC by the Adjudicating Authority and in the light of Section 32A of IBC, the criminal proceedings under Section 138 of the NI Act will stand terminated only in relation to the Corporate Debtor if the same is taken over by a new management- Para 86 in concurring judgment of Justice PardiwalaNegotiable Instruments Act 1881 -Section 138- Where the proceedings under Section 138 of the NI Act had already commenced and during the pendency the plan is approved or the company gets dissolved, the directors and the other accused cannot escape from their liability by citing its dissolution- Para 52 in Justice Pardiwala's judgmentNegotiable Instruments Act 1881 -Section 138-I am of the view that by operation of the provisions of the IBC, the criminal prosecution initiated against the natural persons under Section 138 read with 141 of the NI Act read with Section 200 of the CrPC would not stand terminated - Para 47
Comments
Post a Comment