https://www.taxtmi.com/caselaws?id=752559 The Bombay HC held that criminal proceedings under Section 138 NI Act against a corporate debtor and its directors can continue despite moratorium under Section 14 IB Code. The court ruled that Section 32-A protection from criminal liability applies only to corporate debtors with management change post-resolution, not to natural persons who were directors/signatories. Since the directors were directly involved in cheque signing and business management, they remain liable for prosecution. The moratorium merely suspends proceedings temporarily without extinguishing liability. The application seeking protection was dismissed as the company and its directors must face continued criminal proceedings for dishonour of cheque offences committed prior to insolvency commencement. en-us Mon, 29 Apr 2024 00:00:00 +0530 Mon, 13 May 2024 21:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752559 The Bombay HC held that criminal proceedings under Section 138 NI Act against a corporate debtor and its directors can continue despite moratorium under Section 14 IB Code. The court ruled that Section 32-A protection from criminal liability applies only to corporate debtors with management change post-resolution, not to natural persons who were directors/signatories. Since the directors were directly involved in cheque signing and business management, they remain liable for prosecution. The moratorium merely suspends proceedings temporarily without extinguishing liability. The application seeking protection was dismissed as the company and its directors must face continued criminal proceedings for dishonour of cheque offences committed prior to insolvency commencement. Case-Laws Indian Laws Mon, 29 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752559