9911796707
TMI Blog2023 (12) TMI 1360X X X X Extracts X X X X X X X X Extracts X X X X ..... Court at Chennai. The petitions filed for suspension of sentence was allowed on conditions to deposit 20% of the compensation amount. The petitioners not complied the said conditions, instead citing pendency of their applications under section 94(a) of IBC before the NCLT, Mumbai, had filed a memo to stay further proceedings in the Appeal in view of sections 94, 96 and 101 of Insolvency and Bankruptcy Code, 2016, which provides for an interim moratorium of legal action or proceedings pending in respect of any debt. Those memos were rejected by the learned Sessions Judge by a docket order. Against the rejection order dated 22/09/2023 the present petition under section 482 of Cr.P.C is filed. 2. The docket order which is impugned in this pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2023 along with application to suspend the sentence, pending appeal. The Learned Principal Session Judge at Chennai allowed the application for suspension of sentence on condition to deposit 20% of the compensation amount. The Appeal was then made over to XXI Additional City Civil Court, Allikullam at Chennai. Before the XXI Additional City Civil Court, Allikullam at Chennai, a memo was filed reporting pendency of insolvency proceedings and the moratorium provided under the Insolvency and Bankruptcy Code, 2016 (in short "IBC") for the insolvent. The Court instead of recording the pendency of insolvency proceedings and stay further proceedings in the criminal appeal had rejected the memo with an endorsement that the conditional order impose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the cheque was issued by the first accused Company drawn by the authorised signatories. These two petitioners as Directors responsible for the day-to-day affairs of the company and hence, they are also liable for dishonouring the cheques. On 19/06/2023, they were convicted and sentenced. Thereafter, these two petitioners have moved individual applications to declare them as insolvent and for appointment of resolution professional. The Judgement of Mohanraj case is not applicable to the petitioners herein, since that case is in respect of corporate debtor, wherein the moratorium mentioned under section 14(1) of the IBC discussed and explained. In that judgment, it is made clear that the moratorium is only for the corporate de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olvency resolution process. Under this Chapter, sections 7 to 10 list out persons, who can initiate/apply for corporate insolvency resolution process and section 11 list out persons who shall not be entitled to make an application to initiate corporate resolution process. In this Chapter, particularly, section 9 of the Code deals with the application for initiation of corporate insolvency process by operational creditor. Section 14 of the Code deals with moratorium for the corporate debtor during the resolution process. Under section 92 of the code, at least 7 days before the end of moratorium period, the discharge order shall be passed by the Adjudicating Authority, based on the resolution professional's final list of qualifying debts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 141 of NI Act. Section 14 of IBC will apply only to the corporate debtor, the natural persons mentioned in Section 141 of NI Act continue to be statutorily liable. 14. Later, on considering the judgement rendered in Mohanraj case (cited supra), the Hon'ble Supreme Court in Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of India Ltd. reported in [2023 (1) MadWN (cri) 145] has reiterated that, if the guarantors does not get the benefit of extinguishment of debt, the Signatory or Director cannot get any benefit. If the argument that the Signatories or Directors are not liable to be proceeded under section 138/141 of NI Act, once the resolution plan is approved, it may lead to absurd situations. 15. In the light of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
