# In the matter of Ortho Relief Hospital and Research vs. Anand Distilleries & Ors.

> HC judgment dated 2025-10-01. Citation: TCN-2025-HC-00078. The petitioner, Ortho Relief Hospital, filed a criminal writ petition challenging the order of the…

- **Court:** HC
- **Order date:** 1 Oct 2025
- **Citation:** TCN-2025-HC-00078
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/bombay-high-court-nagpur/ortho-relief-hospital-and-research-vs-anand-distilleries-ors-5311ec72

## Summary

### Background

The petitioner, Ortho Relief Hospital, filed a criminal writ petition challenging the order of the 10th Joint Civil Judge, Senior Division and Additional Chief Judicial Magistrate, Nagpur, which discharged the respondents (Anand Distilleries and its directors) from an offence punishable under Section 138 of the Negotiable Instruments Act, 1881.

## Facts

The petitioner, Ortho Relief Hospital, extended a short-term loan of Rs. 15,00,000/- to the respondents in October 2015.

Respondents 2 and 3 issued a post-dated cheque for Rs. 15,00,000/- drawn on Cosmos Bank, Amravati, as security for the loan.

The cheque was signed by respondent no. 2 in the capacity of Director and Authorized Signatory of respondent no. 1 Company.

The respondents paid interest on the loan at 18% p.a. periodically until January 2018, after which they stopped making payments.

The petitioner presented the cheque on 14.12.2018, but it was dishonored with the remark 'insufficient funds'.

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## Issues and analysis

### Issue 1: Whether prior initiation of proceeding under the IB Code would frustrate the claim of the …

**Ratio:** The moratorium under Section 14 of the IBC bars initiation or continuation of proceedings

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**Reasoning:** The court relied on several Supreme Court judgments, including P. Mohanraj, Ajay Kumar

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**Interpretation:** Section 32A of the IB Code protects the corporate debtor but not individuals

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**Application:** The court applied the principles established in the cited judgments to the

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## Parties

- **Judges:** M.M. NER…
- **Appellants:** Ortho Relief…
- **Respondents:** Anand Disti…; Abhaykumar…; +1 more
- **Other parties:** Punjab National…; IRP…; +7 more
- **Advocates:** S.S. De…; S.D. K…

## Timeline

- **2015-10-00 — Loan Ext…**: Ortho Relief Hospital extended a short-term loan…
- **2018-01-00 — Payments S…**: Anand Distilleries stopped…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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