TaxTMI 
TaxTMI 
2018 (8) TMI 631
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....y and Bankruptcy Code, 2006 (hereinafter referred to as Code) applies even to a criminal proceeding. 3] The facts as are necessary to be delineated are to the effect that the petitioner company instituted a complaint under Section 138 of the Negotiable Instruments Act (hereinafter referred as N.I.Act for short) bearing SCC No.3197/2016 against the respondent no.2 company and the respondents 3 to 7 who are its Managing Director and Directors, in respect of a cheque for an amount of Rs. 15,58,612/issued by respondents 2 to 7 towards discharge of a civil liability. The learned Magistrate issued process under Section 204 of the Code of Criminal Procedure. Being aggrieved, the respondents 2 to 7 challenged the order of issuance of process by pr....
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....ring a similar provision contained in Sub Section 1 of Section 446 of the Companies Act it has interpreted the words 'Suit or other proceeding' contained in that Section as not to include a criminal complaint filed under Section 138 of the N.I.Act. The learned Additional Sessions Judge after hearing the arguments allowed the application Exh.20 filed by the respondents 2 to 7 and directed the revision to be kept in abeyance till further order was passed in the insolvency proceeding. Being aggrieved by the order, the petitioner has filed this Writ Petition under Articles 226 and 227 of the Constitution of India. 6] The learned advocate for the petitioner vehemently submitted that the provision contained in Section 14 of the Code does....
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....d advocate for the respondents 2 to 7 submitted that the decision in the case of Indorama (supra) is not applicable to the facts of the matter in hand. In that case, the provision of Sub Section 1 of Section 446 of the Companies Act was in question, whereas in the matter in hand, it is the provision of Section 14 of the Code which comes into play. The very purpose of prohibiting a proceeding to go on would be defeated if a complaint under Section 138 of the N.I. Act is allowed to be prosecuted further. The National Company Law Tribunal has also passed an order invoking the provision of Section 14 of the Code and in the circumstances, no fault can be found in the impugned order passed by the learned Additional Sessions Judge in directing the....
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....rohibiting all of the following, namely: (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any Court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets of any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (d) the recovery of any property by an owner or....
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.... submitted that these words do not precisely restrict its operation to only civil proceedings. The words are omnibus and even include a criminal proceeding including the one under Section 138 of the N.I. Act and a criminal revision arising therefrom. 13] As is the principle of interpretation of Statutes, these words would take colour from words preceding thereto. These words will have to be interpreted ejusdem generis with the words 'suits' used earlier thereto. So interpreted, the word 'proceedings' used therein and even the words 'order' and 'in Court of law' will have to be interpreted as a proceeding arising in the nature of a suit and orders passed in such proceedings and suits. Apart from the fact that....