For the period of moratorium the moratorium provision contained in Section 14 of the IBC would apply only to the corporate debtor therefore no proceedings under Section 138/141 of NI Act can continue or be initiated against the corporate debtor because of the statutory bar provided therein in IBC.
However, such proceedings can very well be initiated or continued against the persons mentioned in Section 141(1) and (2) of the Negotiable Instruments Act as the moratorium provision contained in Section 14 of the IBC would apply only to the corporate debtor. The natural persons mentioned in Section 141 of NI Act continuing to be statutorily liable.
Section 138/141 proceeding against a corporate debtor is covered by Section 14(1)(a) of the IBC. clause (b) of Section 14(1) also makes it clear that during the moratorium period, any transfer, encumbrance, alienation, or disposal by the corporate debtor of any of its assets or any legal right or beneficial interest therein being also interdicted, yet a liability in the form of compensation payable under Section 138 would somehow escape the dragnet of Section 14(1). While Section 14(1)(a) refers to monetary liabilities of the corporate debtor, Section 14(1)(b) refers to the corporate debtor’s assets, and together, these two clauses form a scheme which shields the corporate debtor from pecuniary attacks against it in the moratorium period so that the corporate debtor gets breathing space to continue as a going concern in order to ultimately rehabilitate itself.
As far as the Directors/persons in management or control of the corporate debtor are concerned, a Section 138/141 proceeding against them cannot be initiated or continued without the corporate debtor. This is because Section 141 of the Negotiable Instruments Act speaks of persons in charge of, and responsible to the company for the conduct of the business of the company, as well as the company.
Thus, where individuals or firms are concerned, the recovery of any property by an owner or lessor, where such property is occupied by or in possession of the individual or firm can be recovered during the moratorium period, unlike the property of a corporate debtor.