Delhi High Court - Orders
Manish Jain vs Indian Renewable Energy Development ... on 27 September, 2022
Author: Yogesh Khanna
Bench: Yogesh Khanna
$~48
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CRL.M.C. 4921/2022
MANISH JAIN
..... Petitioner
Through: Ms.Purti Gupta, Ms.Henna George
and Ms.Shivani Sharma, Advocates.
versus
INDIAN RENEWABLE ENERGY
DEVELOPMENT AGENCY LTD
..... Respondent
Through: None.
CORAM:
HON'BLE MR. JUSTICE YOGESH KHANNA
ORDER
% 27.09.2022 CRL.M.A. 19745/2022
1. Exemption is allowed, subject to all just exceptions.
2. The application stands disposed of.
CRL.M.C. 4921/2022, CRL.M.A. 19744/2022
3. This petition is filed with the following prayers:-
a. quash the Criminal Complaint being CC No.1584/2019 filed by Respondent against the Petitioner herein under Section 138 of the NI Act before the Ld. Metropolitan Magistrate Patiala House Court, New Delhi and the cognizance order dated 05.03.2020 passed by the Ld. Metropolitan Magistrate Patiala House Court, New Delhi in CC No. 1584/2019;
b. stay the proceedings under the Criminal Complaint being CC No.1584/2019 filed by Respondent against the Petitioner herein before the Ld. Metropolitan Magistrate Patiala House Courts, New Delhi in terms of Section 96 of the Insolvency and Bankruptcy Code, 2016. c. pass such other order or orders as this Hon'ble Court may deem just and proper in the facts and circumstances of the case.
4. The learned counsel for petitioner submits the petitioner herein has Signature Not Verified Digitally Signed By:PRADEEP SHARMA Signing Date:28.09.2022 14:07 given personal guarantee to the company M/s.NCNL Industries Limited against whom the insolvency proceedings have been initiated by the State Bank of India. It is stated that Section 2(e) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as the IBC) deals with personal guarantors and it notes:-
2. The provisions of this Code shall apply to--
(e) personal guarantors to corporate debtors;
5. Reference is also made to Section 96 of the IBC, which notes:-
96. (1) When an application is filed under section 94 or section 95--
(a) an interim-moratorium shall commence on the date of the application in relation to all the debts and shall cease to have effect on the date of admission of such application; and
(b) during the interim-moratorium period--
(i) any legal action or proceeding pending in respect of any debt shall be deemed to have been stayed; and
(ii) the creditors of the debtor shall not initiate any legal action or proceedings in respect of any debt. (2) Where the application has been made in relation to a firm, the interim-moratorium under sub-section (1) shall operate against all the partners of the firm as on the date of the application.
(3) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
6. Reliance is also placed on the decision in P Mohonraj & Ors. vs. Shah Brothers Ispat Private Limited (2021) 6 SCC 258. It is stated since the proceedings have been initiated against the petitioner under Section 95 of IBC as is evident from the orders dated 12.07.2022 and 10.08.2022 of the NCLT.
7. Reference is also made to an order dated 02.09.2022 passed by this Court in Crl.M.C.No.4265/2022 which is coming up for hearing on 10.10.2022.
Signature Not Verified Digitally Signed By:PRADEEP SHARMA Signing Date:28.09.2022 14:078. Issue notice to respondent through all modes returnable on 16.12.2022.
9. Considering the submissions made above, the stay of proceedings as directed in Crl.M.C.No.4265/2022 before the learned Trial Court shall also enure to petitioner in this case too.
YOGESH KHANNA, J.
SEPTEMBER 27, 2022 M Signature Not Verified Digitally Signed By:PRADEEP SHARMA Signing Date:28.09.2022 14:07