Madras High Court
Mrs.Shakvai Mumtaj Beham vs M/S.Vasavi Marketing on 11 July, 2022
Author: N.Sathish Kumar
Bench: N.Sathish Kumar
Crl.O.P.No.15858 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 11.07.2022
CORAM:
THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR
Crl.O.P.No.15858 of 2022
and
Crl.M.P.Nos.8948 & 8949 of 2022
Mrs.Shakvai Mumtaj Beham
Director, M/s.Saalim Shoes [P] Ltd.,
No.1-A, Regency Apartment,
No.5, 1st Lane, Nungambakkam High Road,
Chennai – 600 034. .. Petitioner
Versus
M/s.Vasavi Marketing
Represented by its Power Agent,
Mr.R.Nagendra Prasad,
Head Office at No.88/A, Vakkil Street,
Ranipet, Walaja Taluk,
Ranipet District. .. Respondent
PRAYER: Criminal Original Petition filed under Section 482 of Cr.P.C., to call
for the entire records in pursuant to the S.T.C.No.52 of 2021 pending on the
file of Judicial Magistrate Court, Ranipet District and quash the same.
For Petitioner : Mr.T.P.Prabakaran
https://www.mhc.tn.gov.in/judis
Page No.1 of 5
Crl.O.P.No.15858 of 2022
ORDER
This Criminal Original Petition has been filed seeking to quash the complaint in S.T.C.No.52 of 2021 pending on the file of Judicial Magistrate Court, Ranipet District, for the offence under Section 138 read with Section 142 of Negotiable Instruments Act, 1881.
2. The present petition has been filed to quash the cheque complaint in S.T.C.No.52 of 2021 mainly on the ground that the management of the first petitioner company was taken over by the Corporate Debtor appointed by National Company Law Tribunal, Division Bench – I, Chennai and there was a moratorium under Section 14(1) of the Insolvency and Bankruptcy Code, 2016. Therefore, it is submitted that no complaint is maintainable as against the petitioner company and its Directors.
3. At the outset, I am unable to persuade myself to the submission of the learned counsel. The Hon'ble Apex Court in the case of P. Mohanraj and Others vs. Shah Brothers Ispat Pvt. Ltd., reported in [2021 SCC Online SC 152], after dealing with various judgements of the Apex Court in paragraph 103 held as follows:
https://www.mhc.tn.gov.in/judis “103. Since the Corporate debtor would be Page No.2 of 5 Crl.O.P.No.15858 of 2022 covered by the moratorium provision contained in Section 14 of the IBC, by which continuation of Section 138/141 proceedings against the corporate debtor and initiation of Section 138/141 proceedings against the said debtor during the corporate insolvency resolution process are interdicted, what is stated in paragraphs 51 and 59 in Aneeta Hada (supra) would then become applicable. The legal impediment contained in Section 14 of the IBC would make it impossible for such proceeding to continue or be instituted against the corporate debtor. Thus, for the period of moratorium, since no Section 138/141 proceeding can continue or be initiated against the corporate debtor because of a statutory bar, such proceedings can be initiated or continued against the persons mentioned in Section 141(1) and (2) of the Negotiable Instrument Act. This being the case, it is clear that the moratorium provision contained in Section 14 of the IBC would apply only to the corporate debtor, the natural persons mentioned in Section 141 continuing to be statutorily liable under Chapter XVII of the Negotiable Instruments Act.'' As the moratorium applies to the Corporate Debtor under sections 138 and 141 of the Negotiable Instruments Act, no proceedings can continued or be initiated because of a statutory bar, such proceedings can be initiated or https://www.mhc.tn.gov.in/judis Page No.3 of 5 Crl.O.P.No.15858 of 2022 continued against the persons mentioned in Section 141(1) and (2) of the Negotiable Instrument Act. This being the case, it is clear that the moratorium provision contained in Section 14 of the IBC would apply only to the corporate debtor, the natural persons mentioned in Section 141 continue to be statutorily liable under Chapter XVII of the Negotiable Instruments Act.
4. In such a view of the matter, the petitioner being the proprietor of the company, has to be prosecuted as per the above judgment.
5. Accordingly, this Criminal Original Petition is dismissed.
Consequently, connected miscellaneous petitions are closed.
11.07.2022 Index : Yes / No Internet: Yes Speaking/non speaking order vrc To
1.Judicial Magistrate Court, Ranipet District
2. The Public Prosecutor High Court, Madras.
https://www.mhc.tn.gov.in/judis Page No.4 of 5 Crl.O.P.No.15858 of 2022 N.SATHISH KUMAR, J.
vrc CRL.O.P.No.15858 of 2022 11.07.2022 https://www.mhc.tn.gov.in/judis Page No.5 of 5