https://www.taxtmi.com/caselaws?id=783526 Once a corporate debtor enters CIRP, moratorium under the Insolvency and Bankruptcy Code divests the company's management and bank-account control from its directors and places it with the IRP or liquidator. Cheques issued after that transfer of control cannot satisfy the foundational requirement of Section 138 of the Negotiable Instruments Act that the drawer maintain the account, so prosecution against the directors is not maintainable. Dishonour marked "ACCOUNT BLOCKED" in these insolvency circumstances is not treated as dishonour for insufficiency of funds in an operative account maintained by the drawer, and the statutory ingredients of the offence are not met. en-us Tue, 16 Dec 2025 00:00:00 +0530 Thu, 18 Dec 2025 08:01:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783526 Once a corporate debtor enters CIRP, moratorium under the Insolvency and Bankruptcy Code divests the company's management and bank-account control from its directors and places it with the IRP or liquidator. Cheques issued after that transfer of control cannot satisfy the foundational requirement of Section 138 of the Negotiable Instruments Act that the drawer maintain the account, so prosecution against the directors is not maintainable. Dishonour marked "ACCOUNT BLOCKED" in these insolvency circumstances is not treated as dishonour for insufficiency of funds in an operative account maintained by the drawer, and the statutory ingredients of the offence are not met. Case-Laws Indian Laws Tue, 16 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783526