The Kolkata Bench of the National Company Law Tribunal recently ruled that disclosure of the fact of initiation of proceedings under Section 138 of the Negotiable Instruments Act in not necessary while filing an Application for Insolvency under the Insolvency and Bankruptcy Code, 2016.
It is to be made clear that the proceedings under section 138 of Negotiable Instrument Act is a different proceeding and liability occurs when a cheque is dishonored, the Bench, comprising Judicial Members Mr. Vijai Pratap Singh and Ms. Manorama Kumari observed.
The Court was hearing an Application filed under Section 7 of the Insolvency and Bankruptcy Code and Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The A…
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