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.
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”.
A bench headed by Justice R F Nariman was faced with the legal issue whether “the institution or continuation of a proceeding under Section 138/141 (cheque bounce cases) of the Negotiable Instruments Act can be said to be covered…
Read the full article at: https://www.businesstoday.in/current/corporate/cheque-bounce-cases-cant-be-filed-or-continued-against-firms-facing-ibc-proceedings-says-sc/story/432710.html