Stayed on proceedings under Section 138 of the Negotiable Instruments Act, 1881 upon initiation of personal insolvency in view of moratorium under Section 96 of IBC – Rakesh Rajpal Vs. Ashok Kumar Gupta – Madhya Pradesh High Court
Counsel for the petitioner submits that the trial Court as well as Revisional Court have erroneously refused to stay the proceedings under Section 138 of Negotiable Instruments Act. The petitioner is facing proceedings under Insolvency and Bankruptcy Code, 2016 and on his application, an order under Section 96 regarding interim moratorium has been passed and, therefore the proceedings ought to have been stayed. Considering the aforesaid submissions, as an interim measure, it is directed that the further proceedings pending before the concerning trial Court shall remain stayed.