Cheque-bounce cases can t be filed or continued against firms facing IBC proceedings, says SC businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.
The Supreme Court said on Monday that Section 138 of the NI Act proceeding can be termed as "civil sheep" in a criminal wolf s clothing.The top court made these observations while upholding that the declaration of moratorium under .
Section 138 NI Act A Civil Sheep In A Criminal Wolf s Clothing ; Quasi-Criminal In Nature : Supreme Court livelaw.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from livelaw.in Daily Mail and Mail on Sunday newspapers.
Cheque dishonor cases can t be filed or continued against firms facing insolvency proceedings: SC
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Last Updated: Mar 01, 2021, 10:01 PM IST
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Synopsis
The top court, however, did not extend the benefit of moratorium on judicial proceedings in cheque bounce cases to directors or signatories of cheques of such firms, saying criminal cases would continue against natural persons .
Agencies
Under IBC, the moment a corporate insolvency resolution process is initiated against a company, it gets statutory protection under section 14 and consequently, a moratorium is put on judicial proceedings against it.
The Supreme Court Monday held the cheque bounce cases can neither be instituted nor be continued against companies which are facing insolvency proceedings and are protected under a provision of Insolvency and Bankruptcy Code (IBC) putting a moratorium on legal proceedings against them.
BREAKING -Moratorium Under Section 14 IBC Covers Section 138 NI Act Proceedings Against Corporate Debtor For Cheque Dishonour : Supreme Court livelaw.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from livelaw.in Daily Mail and Mail on Sunday newspapers.