https://www.taxtmi.com/highlights?id=90167 The HC quashed criminal proceedings under Section 138 NIA against former directors of a company under liquidation. Applicants 2 and 4 had resigned as directors in 2015 and 2017 respectively, before the alleged cheque issuances in 2022. The court held that Section 141 NIA requires persons to be in charge of and responsible for company business at the time of offence commission. Post-moratorium under IBC 2016, powers transferred to Resolution Professional, rendering applicants 1 and 3 without authority to issue cheques. The court found cheques were actually issued in 2018 as security, and Resolution Professional had instructed the complainant not to deposit them after moratorium declaration on 9.5.2019. Criminal liability cannot attach to persons lacking requisite control and responsibility over company operations. en-us Sat, 05 Jul 2025 08:47:35 +0530 Sat, 05 Jul 2025 08:47:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=90167 The HC quashed criminal proceedings under Section 138 NIA against former directors of a company under liquidation. Applicants 2 and 4 had resigned as directors in 2015 and 2017 respectively, before the alleged cheque issuances in 2022. The court held that Section 141 NIA requires persons to be in charge of and responsible for company business at the time of offence commission. Post-moratorium under IBC 2016, powers transferred to Resolution Professional, rendering applicants 1 and 3 without authority to issue cheques. The court found cheques were actually issued in 2018 as security, and Resolution Professional had instructed the complainant not to deposit them after moratorium declaration on 9.5.2019. Criminal liability cannot attach to persons lacking requisite control and responsibility over company operations. Highlights Indian Laws Sat, 05 Jul 2025 08:47:35 +0530 https://www.taxtmi.com/highlights?id=90167