MR YATENDRA SINGH S/O RAJENDRA SINGH PANWAR v. GANGA IRON STEEL AND TRADING COMPANY THROUGH ITS DIRECTOR MR MUKESH OMPRAKASH AGRAWAL
Discusses the interplay between IBC and NIA, particularly moratorium's effect on cheque dishonor cases against directors.
Court: Bombay High Court
Citation: 2025:BHC-NAG:6249
Decision Date: 03-07-2025
List of Laws
The Negotiable Instruments Act (the NIA); Insolvency and Bankruptcy Code, 2016 (IBC); Companies Act, 2013; Limited Liability Partnership Act, 2008; Code of Civil Procedure, 1908; Code of Criminal Procedure, 1973
- The Negotiable Instruments Act (the NIA): The judgment extensively discusses Section 138, defining dishonour of cheques, outlining the ingredients for constituting an offence under this provision, including the requirement of a cheque being drawn, its presentation and return unpaid, service of notice for payment, and failure of the accused to make payment within 15 days. It also discusses Section 141, dealing with offences by companies, emphasizing that liability under this section requires the person to be in charge of and responsible for the conduct of the company's business at the time the offence was committed. The judgment analyzes how the moratorium under IBC affects proceedings under Sections 138 and 141.
- Insolvency and Bankruptcy Code, 2016 (IBC): The judgment extensively discusses several sections of the IBC. Section 3(7) defines "corporate person". Section 3(8) defines "corporate debtor". Section 3(19) defines "insolvency professional". Section 14 deals with the moratorium, prohibiting institution or continuation of suits or proceedings against the corporate debtor. Section 17 deals with the management of affairs of corporate debtor by interim resolution professional, including the vesting of management in the interim resolution professional and suspension of the powers of the board of directors. Section 32A deals with liability for prior offences, stating that the liability of a corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution process shall cease under certain conditions. Section 33 deals with initiation of liquidation. The judgment analyzes the interplay between these sections, particularly Section 14, and proceedings under Section 138 of the NIA. The judgment also mentions Section 10 and Rule 7 of the IBC, relating to application to adjudicating authority and rules for initiation of CIRP.
- Companies Act, 2013: Section 2(20) of the Companies Act, 2013, which defines "company", is referenced within the context of the definition of "corporate person" under Section 3(7) of the IBC. Section 2(60) is referenced within the context of Section 32A of the IBC.
- Limited Liability Partnership Act, 2008: Section 2 of the Limited Liability Partnership Act, 2008, is referenced within the context of the definition of "corporate person" under Section 3(7) of the IBC and Section 32A of the IBC.
- Code of Civil Procedure, 1908: Section 26 of the Code of Civil Procedure, 1908, is referenced in the judgment in the context of defining "suits" and distinguishing them from "proceedings" under the IBC.
- Code of Criminal Procedure, 1973: Section 6 of the CrPC is referenced in the judgment in the context of defining criminal proceedings.
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