TMI Blog2022 (1) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... ny and due to which, the 2nd accused/2nd petitioner was unable to honor the post dated cheques issued in favour of the respondent Company. Inspite of the communication of the 1st petitioner Company regarding the insolvency process, the complainant has presented the cheques for collection, which was dishonored and thereby filed the complaint against the 1st petitioner Company. In the case on hand, the insolvency process was initiated by NCLT on 10.07.2017 and moratorium has been declared under the Insolvency and Bankruptcy Code. Therefore, as held by the Hon'ble Supreme Court in P. MOHANRAJ ORS. VERSUS M/S. SHAH BROTHERS ISPAT PVT. LTD. [ 2021 (3) TMI 94 - SUPREME COURT] , the moratorium was only in respect of the corporate debtor a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 for discharge of the debts arising out of supply. When the said cheques were presented in bank, it was returned and the same dishonoured by the complainant's Bank with an endorsement of Payment Stopped by the Drawers . Therefore, the respondent has filed the complaints before the Court of Judicial Magistrate, Erod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 decision of the Hon'ble Supreme Court in the decision (P. Mohanraj and Others Vs. Shah Brothers Ispat Pvt., Ltd.,) and submitted that for the period of moratorium, no proceedings under Section 138 and 141 of the Negotiable Instrument Act, 1881 can be initiated against the corporate debtor, since there is a statutory ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 to honor the post dated cheques issued in favour of the respondent Company. Inspite of the communication of the 1st petitioner Company regarding the insolvency process, the complainant has presented the cheques for collection, which was dishonored and thereby filed the complaint against the 1st petitioner Company. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ategorical 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 Section 138 and 141 of the Negotiable Instrument Act, 1881 would survive, but would not be attracted against the company. The decision of the Hon'ble Supreme Court is squarely covers the case on hand. 11. In the case on hand, the insolvency process was initiated by NCLT on 10.07.2017 and moratorium has been declared unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eniority of the case. The petitioners and respondent are directed to cooperate with the trial court for the early completion of trial. Further, taking into consideration of the request as made by the learned counsel for the petitioners, their appearance before the trial court is dispensed with except for their appearance for the purpose of receiving the copy of the proceedings under Sec. 207 Cr.P.C., framing of charges, questioning under Section 313 Cr.P.C. and on the day on which judgment is to be pronounced. However, if for any particular reason, the presence of the petitioners is necessary, the trial court, at its wisdom, shall direct their appearance on those days. Consequently, connected Criminal Miscellaneous Petitions are closed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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