The petitioners sought to quash a criminal complaint (No. 6614 dated 29.09.2015) filed by Can Bank Factors Limited under Section 138 of the Negotiable Instruments Act, 1881, and Section 420 of the IPC, along with the summoning order dated 31.05.2016. The complaint arose from the dishonour of cheques issued by M/s Supreme Tex Mart Limited (the corporate debtor) to Can Bank Factors Limited for a factoring credit facility. The petitioners, being persons in-charge of the corporate debtor, argued that the subsequent initiation of corporate insolvency resolution process (CIRP) against M/s Supreme Tex Mart Limited, including a moratorium under Section 14 of the IBC and a subsequent liquidation order, rendered the criminal proceedings against them legally impermissible.
M/s Supreme Tex Mart Limited availed a factoring credit facility of Rs.5 crore from M/s Can Bank Factors Limited under a factoring agreement.
The petitioners (Ajay Gupta and another) were the persons in-charge of and responsible for the affairs of M/s Supreme Tex Mart Limited at the relevant time.
M/s Supreme Tex Mart Limited defaulted in repayment, and its account was classified as a Non-Performing Asset (NPA).
M/s Supreme Tex Mart Limited issued 8 cheques totaling Rs.3,66,62,663/- (Cheque Nos. 582873, 582874, 582875, 582876, 582877, 582878, 922622, 922638) dated between 05.06.2015 and 24.06.2015.
The cheques were presented for encashment and dishonoured on 08.08.2015 with the remarks 'Exceeds Arrangement'.
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Cheque Nos. 582873,…
Cheque Nos. 922622,…
The petitioners sought to quash a criminal complaint (No. 6614 dated 29.09.2015) filed by Can Bank Factors Limited under Section 138 of the Negotiable Instruments Act, 1881, and Section 420 of the IPC, along with the summoning order dated 31.05.2016. The complaint arose from the dishonour of cheques issued by M/s Supreme Tex Mart Limited (the corporate debtor) to Can Bank Factors Limited for a factoring credit facility. The petitioners, being persons in-charge of the corporate debtor, argued that the subsequent initiation of corporate insolvency resolution process (CIRP) against M/s Supreme Tex Mart Limited, including a moratorium under Section 14 of the IBC and a subsequent liquidation order, rendered the criminal proceedings against them legally impermissible.
M/s Supreme Tex Mart Limited availed a factoring credit facility of Rs.5 crore from M/s Can Bank Factors Limited under a factoring agreement.
The petitioners (Ajay Gupta and another) were the persons in-charge of and responsible for the affairs of M/s Supreme Tex Mart Limited at the relevant time.
M/s Supreme Tex Mart Limited defaulted in repayment, and its account was classified as a Non-Performing Asset (NPA).
M/s Supreme Tex Mart Limited issued 8 cheques totaling Rs.3,66,62,663/- (Cheque Nos. 582873, 582874, 582875, 582876, 582877, 582878, 922622, 922638) dated between 05.06.2015 and 24.06.2015.
The cheques were presented for encashment and dishonoured on 08.08.2015 with the remarks 'Exceeds Arrangement'.
…Cheque Nos. 582873,…
Cheque Nos. 922622,…