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SC held that a personal guarantor remains liable for cheque dishonour even after company liquidation. Despite moratorium under IBC, criminal proceedings under Section 138 of N.I. Act can continue. The appellant was granted a final opportunity to deposit 25% of cheque amount within eight weeks, failing which legal consequences including potential custody would ensue. The appeals were dismissed, with directions for the High Court to hear the revisional application on merits if deposit is made, allowing reasonable opportunity for all parties to present their versions.
SC held that a personal guarantor remains liable for cheque dishonour even after company liquidation. Despite moratorium under IBC, criminal proceedings under Section 138 of N.I. Act can continue. The appellant was granted a final opportunity to deposit 25% of cheque amount within eight weeks, failing which legal consequences including potential custody would ensue. The appeals were dismissed, with directions for the High Court to hear the revisional application on merits if deposit is made, allowing reasonable opportunity for all parties to present their versions.
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