There is no bar contained in any of the provisions of the IBC restraining the complainant to approach the criminal court to seek penal action under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) – Ajay Vasant Tikekar Vs. Geelon Industries Pvt. Ltd. – Gujarat High Court
Hon’ble High Court held that:
(i) There is no bar contained in any of the provisions of the IBC restraining the complainant to approach the criminal court to seek penal action under Section 138 of the NI Act.
(ii) The signatory/director cannot take the benefit of discharge obtained by the corporate debtor by operation of law under the IBC.
(iii) In view of Sections 138, 139 and 141 of the NI Act, it is also clear position of law that under provisions of Section 14 of IBC, the proceedings cannot continue against corporate debtor but can be initiated or continued against natural persons including persons mentioned under Sections 141(1) and 141(2) of the NI Act.
