Ajanta Offset and Packaging Ltd.

In case cheque issued prior to admission of CIRP and presented for encashment after admission of or during CIRP, Promoters/Directors of Corporate Debtor being natural persons, cannot be prosecuted under Section 138 of NI Act and P. Mohanraj & Others v. Shah Brothers Ispat does not apply – Govind Prasad Todi and Anr. Vs. Govt. of NCT of Delhi and Anr. – Delhi High Court

Hon’ble High Court holds that in P. Mohanraj, 51 cheques were issued by the company in favour of the respondent towards amounts payable from 21.09.2015 to 11.11.2016. On 31.03.2017, the respondent issued a statutory demand notice under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881. The order admitting the application was passed on 06.06.2017 by the Adjudicating Authority directing commencement of the CIRP with respect to the company and putting a moratorium in terms of Section 14 of the IBC. Hence in judgment of P.Mohanraj, the moratorium commenced from 06.06.2017. Prior to that not only the cheques had bounced but demand notices were also issued. In the present case, prior to presentation of cheques, not only the mortarium kicked in but the IRP had also sent the effective letter. As a result, the cheques became incapable of encashment.

In case cheque issued prior to admission of CIRP and presented for encashment after admission of or during CIRP, Promoters/Directors of Corporate Debtor being natural persons, cannot be prosecuted under Section 138 of NI Act and P. Mohanraj & Others v. Shah Brothers Ispat does not apply – Govind Prasad Todi and Anr. Vs. Govt. of NCT of Delhi and Anr. – Delhi High Court Read Post »

Extension of CIRP time as the Successful Resolution Applicant may submit Performance Guarantee – G. Satyanarayana RP Ajanta Offset and Packaging Ltd. Vs. Govind Prasad Todi Successful Resolution Applicant – NCLAT New Delhi

The Adjudicating Authority has noticed earlier proceedings in the case and has refused to extend the time and rejected the Application which was filed by the IRP/RP for extension of 15 days’ time as the Successful Resolution Applicant may submit Performance Guarantee.
NCLAT set aside the Order holding that when the Resolution Plan was approved on 30.12.2021, the CIRP proceedings were virtually completed and only for the purpose of submission of Performance Guarantee, time was prayed for. We are of the view that the Adjudicating Authority ought to have extended the time as prayed for to give effect the Resolution Plan which was approved by the CoC on 30.12.2021. The observation of the Adjudicating Authority that 45 days’ extension was granted till 30.12.2021 which was also noticed in the order itself was sufficient for accepting the prayer for extension of 15 days and Adjudicating Authority committed error in rejecting the said prayer.

Extension of CIRP time as the Successful Resolution Applicant may submit Performance Guarantee – G. Satyanarayana RP Ajanta Offset and Packaging Ltd. Vs. Govind Prasad Todi Successful Resolution Applicant – NCLAT New Delhi Read Post »

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