https://www.taxtmi.com/caselaws?id=761748 Section 32-A of the Insolvency and Bankruptcy Code protects a corporate debtor from prosecution for offences committed before commencement of CIRP once a resolution plan is approved and new management takes over. Applied to cheque dishonour proceedings under Section 138 of the Negotiable Instruments Act, this meant the criminal case against the company for pre-CIRP cheques could not continue after approval of the plan. The protection operates only in favour of the corporate debtor; the approval of the resolution plan does not wipe out the personal liability of natural persons such as signatories or directors. The prosecution against the company alone was therefore unsustainable and was quashed. en-us Wed, 24 Jul 2024 00:00:00 +0530 Fri, 15 Nov 2024 17:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761748 Section 32-A of the Insolvency and Bankruptcy Code protects a corporate debtor from prosecution for offences committed before commencement of CIRP once a resolution plan is approved and new management takes over. Applied to cheque dishonour proceedings under Section 138 of the Negotiable Instruments Act, this meant the criminal case against the company for pre-CIRP cheques could not continue after approval of the plan. The protection operates only in favour of the corporate debtor; the approval of the resolution plan does not wipe out the personal liability of natural persons such as signatories or directors. The prosecution against the company alone was therefore unsustainable and was quashed. Case-Laws IBC Wed, 24 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761748