Can the proceedings under Section 138/ 141 of Negotiable Instruments Act be initiated against a company in respect of whom a moratorium in terms of Section 14 of the Insolvency and Bankruptcy Code has been initiated?
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… Read More »Can the proceedings under Section 138/ 141 of Negotiable Instruments Act be initiated against a company in respect of whom a moratorium in terms of Section 14 of the Insolvency and Bankruptcy Code has been initiated?