https://www.taxtmi.com/highlights?id=84827 Petitioners, Managing Director and Director of Ms. Kudos Chemie Pvt. Ltd., sought stay of proceedings u/s 138 of Negotiable Instruments Act, 1881, invoking Section 96 of Insolvency and Bankruptcy Code, 2016. HC held proceedings u/s 138 NI Act penal in nature, not in respect of any debt. Directors cannot escape penal liability u/ss 138/141 NI Act due to company's insolvency. Section 96 IBC not a bar to continue Section 138 proceedings against Directors. Petition dismissed as misuse of process to delay 9-year-old proceedings. en-us Mon, 13 Jan 2025 18:56:37 +0530 Mon, 13 Jan 2025 18:56:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=84827 Petitioners, Managing Director and Director of Ms. Kudos Chemie Pvt. Ltd., sought stay of proceedings u/s 138 of Negotiable Instruments Act, 1881, invoking Section 96 of Insolvency and Bankruptcy Code, 2016. HC held proceedings u/s 138 NI Act penal in nature, not in respect of any debt. Directors cannot escape penal liability u/ss 138/141 NI Act due to company's insolvency. Section 96 IBC not a bar to continue Section 138 proceedings against Directors. Petition dismissed as misuse of process to delay 9-year-old proceedings. Highlights Indian Laws Mon, 13 Jan 2025 18:56:37 +0530 https://www.taxtmi.com/highlights?id=84827