# In the matter of Vishnoo Mittal Vs. Shakti Trading Company CRM-M No. 10624 of 2020 (O&M)

> HC judgment dated 2021-12-21. Citation: TCN-2021-HC-00003. The case involves a complaint bearing No. 15580/18 titled as Ms/ Shakti Trading Company versus M/s…

- **Court:** HC
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-HC-00003
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/gauhati-high-court-kohima/vishnoo-mittal-vs-shakti-trading-company-crm-m-no-10624-of-2020-1edde726

## Summary

### Background

The case involves a complaint bearing No. 15580/18 titled as Ms/ Shakti Trading Company versus M/s Xalta Food and Beverages Pvt. Ltd., and others, under Section 138 of the Negotiable Instruments Act, 1881. A cheque for Rs. One lac was dishonoured. The complainant sent a statutory notice. The petitioner, Vishnu Mittal, challenged the summoning order, arguing that a moratorium imposed by the National Company Law Tribunal (NCLT) on 25.7.2018, under Section 14 of the Insolvency and Bankruptcy Code (IBC), should extend to the proceedings under the Negotiable Instruments Act.

## Facts

A complaint was filed against M/s Shakti Trading Company and others for dishonour of a cheque. The cheque, bearing No. 31859 dated 05.07.2018, for Rs. One lac, was dishonoured on 07.07.2018. A statutory notice was sent on 06.08.2018. The National Company Law Tribunal (NCLT) had imposed a moratorium on 25.07.2018, under Section 14 of the Insolvency and Bankruptcy Code (IBC), on M/s Xalta Food and Beverages Pvt. Ltd., the respondent-accused. Vishnu Mittal, a suspended director of M/s Xalta Food and Beverages Pvt. Ltd., challenged the summoning order, arguing that the moratorium should extend to the proceedings under the Negotiable Instruments Act. The complainant in the present case is the operational creditor in the insolvency proceedings before the NCLT.

## Issues and analysis

### Issue 1: Whether the moratorium imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC) …

**Ratio:** The Supreme Court in P.Mohan Raj and others versus Shah Brothers Ispat Private Limited

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**Reasoning:** The court reasoned that the mandate occurring in Section 14 of the IBC becomes animated,

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**Interpretation:** Section 14 of the IBC imposes a moratorium on the institution or continuation

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**Application:** In this case, the moratorium was imposed before the issuance of the demand

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## Parties

- **Judges:** SURESHWAR…
- **Appellants:** Vishnoo M…
- **Respondents:** M/s Xalta Food…; M/s Shakti…

## Timeline

- **2018-07-05 — Cheque D…**: Cheque bearing No. 31859 of…
- **2018-07-07 — Cheque Dish…**: Cheque bearing No.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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