By Dr. K. Shivaram | Senior Advocate
Rahul K. Hakani | Shashi Bekal | Advocates
11 Narinder Garg & Ors. vs. Kotak Mahindra Bank Ltd. & Ors. WP(C) No. 93 of 2022 (SC) Date of order: 28th March, 2022 Bench: Uday Umesh Lalit; J., S. Ravindra Bhat; J. Pamidighantam and Sri Narasimha, J.
Insolvency & Bankruptcy – Liability of a Director – Negotiable Instruments – Would be statutorily liable under the Negotiable Instruments Act [Insolvency & Bankruptcy Code, 2016 (Code), S. 14, Negotiable Instruments Act, 1881, S. 138, S. 141]
FACTS The Petitioner filed a writ petition seeking to quash the criminal complaints filed against the corporate debtor and its directors u/s 138 of the Negotiable Instruments Act, 1881 (Act) pending before concerned Judicial Magistrate/Chief Metropolitan Magistrate/Judicial Magistrate of 1st Class in view of the order dated 18th March, 2020 passed by the National Company Law Tribunal, Chandigarh, by which the Resolution Plan was approved by the CoC u/s 30(4) of the Code and as the Respondent Complainants have accepted the approved Resolution Plan.
HELDRelying on the decision in the case of
P. Mohanraj & Others vs. Shah Brothers Ispat Private Limited, (2021) 6 SCC 258, it was held that the moratorium provisions contained in Section 14 of the Insolvency and Bankruptcy Code, 2016 would apply only to the corporate debtor and that the natural persons mentioned in Section 141 of the Act would continue to be statutorily liable under the provisions o
