Merely because of initiation of proceedings under the Insolvency and Bankruptcy Code, 2016 the signatory of the cheque cannot escape from his liability | Section 96 of IBC does not bar on Court’s direction to deposit an amount as a condition precedent for suspension of sentence under NI Act, 1881 – Anurodh Mittal Vs. Rehat Trading Company and Anr. – Madhya Pradesh High Court
Hon’ble High Court refers P. Mohanraj & Ors. v. Shah Brothers Ispat Pvt. Ltd. (2021) ibclaw.in 24 SC and Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of India Ltd. (2023) ibclaw.in 30 SC judgments and holds that considering the totality of facts and circumstances of the case and in view of the fact that merely because of initiation of proceedings under the Code, 2016 the signatory of the cheque cannot escape from his liability, it is held that conviction recorded by Trial Court was not bad on account of initiation of proceedings under the Code, 2016.