% 20.09.2024 CRL.M.A. 27855/2024 & 27856/2024 Exemptions allowed, subject to just exceptions.

Applications stand disposed of.

CRL.M.C. 7299/2024, CRL.M.A. 27854/2024

1. Petition under Article 227 of the Constitution of India read with Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 ('BNSS') has been preferred on behalf of petitioner for setting aside order dated 06.09.2024 passed by learned JMFC (NIA) Digital Court 02, North West District, Rohini Courts, New Delhi in CC NI ACT 503/2021, in proceedings under Section 138 NI Act.

2. Issue notice. Learned APP for the State appears on advance notice and accepts notice.

Respondent No.2 be served through all permissible modes on necessary steps being taken by the petitioner, returnable for 20.11.2024.

3. In brief, a Company Petition No.934/IBC/MB/2020 was filed by CRL.M.C.7299/2024 Page 1 of 3 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/09/2024 at 02:04:30 respondent No.2 Nitin Plastic before the National Company Law Tribunal (NCLT), Mumbai to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Prince Manufacturing Industries Private Limited (accused No.1 in proceedings under Section 138 NI Act) alleging that company had defaulted in making the payment to respondent No.2. The Company Petition was allowed and CIRP was initiated by NCLT vide order dated 05.10.2021. As such, the date of moratorium was to have effect from the date of pronouncement w.e.f. 05.10.2021 till completion of CIRP. Present petitioner (Harshvardhan Piyush Chheda) arrayed as accused No.4 in proceedings under Section 138 NI Act being the Director was summoned in the proceedings under Section 138 r/w 141 NI Act on account of dishonour of cheque dated 15.01.2021 (dishonoured on 03.02.2021) for Rs.1,43,71,456/- vide order dated 09.08.2021.

4. Learned counsel for the petitioner submits that moratorium declared under Section 101 of Insolvency and Bankruptcy Code, 2016 (IBC, 2016) triggered stay of proceedings in relation to all debts including the proceedings under Section 138 NI Act and an application was accordingly filed before the learned Trial Court under Section 101 of IBC, 2016 but the same has been wrongly dismissed vide order dated 06.09.2024. He further emphasizes that in terms of Section 101 of IBC, 2016 and orders dated 05.10.2021 and 04.06.2024 passed by NCLT, proceedings against the Director be stayed.

5. Detailed written submissions filed on behalf of the parties before the learned Trial Court have not been annexed with the present petition.

The proceedings initiated on account of dishonour of cheque fall within the scope of Section 14 of IBC, 2016, however, the protection does not automatically extend to the erstwhile Directors who were in-charge or CRL.M.C.7299/2024 Page 2 of 3 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/09/2024 at 02:04:30 responsible to the affairs of the corporate debtor for the purpose of issue of dishonoured cheque prior to triggering of moratorium on initiation of CIRP.

It has been observed in Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of India Ltd., Criminal Appeal No.171-172 of 2023 decided on 15.03.2023 by three Judge Bench of the Hon'ble Apex Court that where the proceedings under Section 138 NI Act had already commenced and during the pendency resolution plan is approved or the company gets dissolved, the Directors and other accused cannot escape from their liability by citing its dissolution.

However, since it is submitted by learned counsel for the petitioner that in Rakesh Bhanot v. M/s Gurdas Agro Pvt. Ltd., SLP (Crl) No.6087/2023 vide order dated 03.04.2024, in respect of similar issue, orders have been passed by the Hon'ble Apex Court for interim stay of proceedings before the learned Trial Court in said case till next date of hearing, proceedings before the learned Trial Court shall be subject to outcome of the present petition.

List on 20.11.2024.

A copy of this order be forwarded to learned Trial Court for information.

ANOOP KUMAR MENDIRATTA, J.

SEPTEMBER 20, 2024/R/sd CRL.M.C.7299/2024 Page 3 of 3 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/09/2024 at 02:04:31