Cheque dishonour liability of responsible individuals continues despite insolvency moratorium, liquidation, and suspension of the company board.

Insolvency moratorium and subsequent liquidation do not extinguish pre-existing criminal liability of directors or persons in charge for cheque dishonour. Where dishonour, demand notice and non-payment occurred before commencement of the corporate insolvency resolution process, the offence is treated as complete. The moratorium protects the corporate debtor and postpones civil debt enforcement; it does not bar criminal prosecution of natural persons. Suspension of board powers and liquidation likewise do not erase liability. Whether individuals were responsible for the company and whether statutory ingredients are met remains for trial.

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Issues: Whether insolvency proceedings, moratorium and subsequent liquidation of the company bar or warrant quashing of prosecution against its directors/persons in charge for cheque dishonour.

Analysis: The offence had crystallised upon dishonour of the cheques, service of demand notice and failure to pay, all before commencement of the corporate insolvency resolution process. The moratorium protects the corporate debtor and does not extinguish the independent criminal liability of natural persons who were in charge of the company when the offence was committed. Subsequent suspension of the board's powers and liquidation do not erase such pre-existing liability. Proceedings for cheque dishonour are criminal in character, whereas insolvency moratorium postpones civil debt enforcement; parallel insolvency proceedings therefore do not bar the prosecution. Questions concerning the petitioners' responsibility for the company and fulfilment of the statutory ingredients must be determined at trial.

Conclusion: Insolvency proceedings and liquidation do not preclude continuation of the cheque-dishonour prosecution against the petitioners; no case for quashing was established.

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