https://www.taxtmi.com/caselaws?id=797259 Interim moratorium under Section 96 of the Insolvency and Bankruptcy Code applies only to proceedings concerning the personal debt of an individual undergoing insolvency resolution. A company's debt remains distinct from its directors' personal debts because of its separate legal identity. Directors and responsible persons may face prosecution for cheque dishonour under Sections 138 and 141 of the Negotiable Instruments Act through statutory vicarious liability, which does not change the corporate character of the underlying debt. Such prosecution is penal rather than merely debt-recovery action and is not stayed by the personal insolvency moratorium. A possible moratorium on compensation recovery does not justify suspension of the criminal trial. en-us Tue, 18 Aug 2026 00:00:00 +0530 Thu, 20 Aug 2026 08:14:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797259 Interim moratorium under Section 96 of the Insolvency and Bankruptcy Code applies only to proceedings concerning the personal debt of an individual undergoing insolvency resolution. A company's debt remains distinct from its directors' personal debts because of its separate legal identity. Directors and responsible persons may face prosecution for cheque dishonour under Sections 138 and 141 of the Negotiable Instruments Act through statutory vicarious liability, which does not change the corporate character of the underlying debt. Such prosecution is penal rather than merely debt-recovery action and is not stayed by the personal insolvency moratorium. A possible moratorium on compensation recovery does not justify suspension of the criminal trial. Case-Laws Indian Laws Tue, 18 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797259