2024 (12) TMI 1230

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nts Act, 1881 ('NI Act'), and all consequential proceedings arising therefrom. 2. Briefly stated, the case of the petitioners is that Petitioner No.1 being the suspended director and Petitioner No. 2 being the Authorised Signatory of the accused company had issued six cheques on behalf of the company in compliance of the order 24.07.2019 passed by the National Consumer Disputes Redressal Commission in Execution Application 93/2017. 3. Subsequently, two cheques dated 23.07.2019 amounting to Rs. 5,00,000/- each were presented to the Bank and were duly honoured. Thereafter, the company was admitted to Corporate Insolvency Resolution Process ('CIRP') under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('IBC') and moratorium under Sect....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ovides that when a corporate debtor is undergoing proceedings before the adjudicating authority (NCLT), the control and management of the corporate debtor are vested in the Interim Resolution Professional ('IRP'). 10. It is undisputed that the cheques in question were dated 15.01.2020 and 15.03.2020, respectively. However, the IRP was appointed on 31.10.2019, prior to these dates. Consequently, the account was blocked due to the order issued by the NCLT, and this cannot be attributed to the account holder. As a result of the NCLT's order, the authority and control of the account holder over the account ceased to exist. 11. A coordinate bench of this Court in Govind Prasad Todi & Anr. V. Govt. of NCT of Delhi & Anr. : 2023 SCC OnLine Del 3....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ngs, it was the interim resolution professional who was in-charge of and responsible for the conducting the business of the company at the time when the cheques were presented for encashment, it is thus clear that the role of the natural persons had ceased. 16. The instrument, namely, the cheque on the basis of which the complaint was filed could not have been encashed by the financial institutions in view of the mandate of section 14 of the Insolvency and Bankruptcy Code read with sections 17 and 18 of the Insolvency and Bankruptcy Code. 18. On the basis of the combined reading, it is the interim resolution professional who had the authority to operate the bank accounts and on the date of presentation, the petitioners cannot be state....