TMI Blog2021 (7) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... directly impact the corporate insolvency resolution process in the same manner as the institution, continuation or execution of a decree in such suit in a civil Court for the amount of debt or other liability. Section 141 of the NI Act speaks of persons in charge of and responsible to the company for the conduct of the business of the company as well as the company . The words as well as the company appearing in Section 141 of NI Act make it absolutely clear that when the company can be prosecuted, then only the persons mentioned in the other categories could be held vicariously liable for the offence. The legal impediment contained in Section 14 of the IBC would make it impossible for such proceeding to continue against the corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Additional Public Prosecutor Ms. Bhatt appearing for respondent No.1 and learned advocate Mr. Nandish Thackar appearing for respondent No.2 waive service of notice of rule on behalf of the respective respondents. With the consent of both the sides, the matters are heard today finally. 3. In Special Criminal Application No.8577 of 2019, the petitioners, original accused Nos.1 2, have challenged the order dated 27.08.2019 passed by the Court of learned Additional Chief Judicial Magistrate, Surat in Criminal Case No.54043 of 2015 below application Exhibit-70 whereby, the said application preferred by the petitioners seeking stay of the trial for a period of 180 days on the ground of the Company being under moratorium under Section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one of the Financial Creditors under Section 7 of the IBC, the Company was admitted for initiation of Corporate Insolvency Resolution Process (CIRP) and moratorium under Section 14 of the IBC was declared vide order dated 16.07.2019 passed by the National Company Law Tribunal, Mumbai Bench in CP (IB) No.1880 / NCLT / MB / 2018. 4.2 In August 2019, the petitioners preferred application Exhibit-70 before the trial Court praying for stay of the proceedings under the NI Act on the ground that the Company of which the petitioners are the Directors is under moratorium under Section 14 of the IBC and therefore, the trial of the case is required to be stayed for a period of 180 days. However, the said application came to be rejected by way of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21 SCC OnLine SC 152, more particularly, on the observations made in para-103, which reads thus:- 103. Since the corporate debtor would be covered by the moratorium provision contained in Section 14 of the IBC, by which continuation of Section 138/141 proceedings against the corporate debtor and initiation of Section 138/141 proceedings against the said debtor during the corporate insolvency resolution process are interdicted, what is stated in paragraphs 51 and 59 in Aneeta Hada (supra) would then become applicable. The legal impediment contained in Section 14 of the IBC would make it impossible for such proceeding to continue or be instituted against the corporate debtor. Thus, for the period of moratorium, since no Section 138/141 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or 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 lessor where such property is occupied by or in the possession of the corporate debtor. (2) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly impact the corporate insolvency resolution process in the same manner as the institution, continuation or execution of a decree in such suit in a civil Court for the amount of debt or other liability. 10. Section 141 of the NI Act speaks of persons in charge of and responsible to the company for the conduct of the business of the company as well as the company . The words as well as the company appearing in Section 141 of NI Act make it absolutely clear that when the company can be prosecuted, then only the persons mentioned in the other categories could be held vicariously liable for the offence. The legal impediment contained in Section 14 of the IBC would make it impossible for such proceeding to continue against the corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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