TaxTMI 
TaxTMI 
2022 (1) TMI 801
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....2. The case of the petitioners is that it is arrayed as one of the accused in cases pending before the Court of Judicial Magistrate, Erode/Fast Track Court-1 and before the Court of Judicial Magistrate, Erode/Fast Track Court-II, for the offences under Section 138, 141 and 142 of the Negotiable Instrument Act, 1881. The accused Company is running a leather business in the name and style of M/s. Nag India Pvt. Ltd., As per the request of the petitioners' Company, the complainant Company agreed to supply the "Wet Blue Cow Hides" and supplied the same. During the course of business, the accused Company was due and payable to the respondent Company for the supply made. For which, the 2nd accused had issued various cheques on different dates....
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....ic announcement was issued by the Insolvency Resolution Professional, requesting all the financial creditors of the accused Company to submit their proof of claims and further, on the same day, the accused Company informed the respondent about the commencement of Corporate Insolvency Resolution Process and requested not to present the cheques. Inspite of that, the complainant has presented the cheques for collection and filed the complaint as if the accused company failed to settle their debts. In view of the commencement of insolvency proceedings against the accused Company, the complainant is not legally entitled to file a complaint before the Trial Court. 5. Further, the learned counsel has drawn the attention of this Court to the dec....
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....ction 141 continuing to be statutorily liable under Chapter XVII of the Negotiable Instrument Act and, therefore, he prays for dismissal of this petition with respect to petitioners 2 and 3. 7. Heard rival submissions of both sides and also perused the materials available on record. 8. It is not in dispute that the cheques issued to the complainant's Company were dishonored with an endorsement "Payment Stopped by the Drawers". In that regard, the 1st petitioner Company had issued a letter to the respondent through their counsel stating about the initiation of insolvency process by National Company Law Tribunal (for short 'NCLT') against the 1st petitioner Company and due to which, the 2nd accused/2nd petitioner was unable ....
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....e case, it is clear that the moratorium provision contained in Section 14 of the IBC would apply only to the corporate debtor, the natural persons mentioned in Section 141 continuing to be statutorily liable under Chapter XVII of the Negotiable Instruments Act." 10. From a perusal of the above, it is evident that there is a categorical finding recorded by the Apex Court that the moratorium provision contained in Section 14 of the Insolvency Bankruptcy Code, would apply only to corporate debtor, the natural persons mentioned in Section 141 continuing to be statutorily liable under Chapter XVII of the Negotiable Instrument Act and thereby, it is clearly settled that the criminal liability of natural persons in case of complaint filed under....