# In the matter of India Infoline Finance Limited & Anr. Vs. The State of West Bengal & Ors. W.P 21071(W) of 2019

> HC judgment dated 2020-01-24. Citation: TCN-2020-HC-00040. The writ petitioner filed a grievance stating that the police refused to act on a First Information…

- **Court:** HC
- **Order date:** 24 Jan 2020
- **Citation:** TCN-2020-HC-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/india-infoline-finance-limited-anr-vs-the-state-of-west-bengal-ors-wp-21071-c3177b81

## Summary

### Background

The writ petitioner filed a grievance stating that the police refused to act on a First Information Report (FIR) registered by them against private respondents, citing a pending Corporate Insolvency Resolution Process (CIRP) related to the company in question. The petitioners relied on a previous judgment arguing that a moratorium does not prohibit criminal proceedings against the company or its directors.

## Facts

India Infoline Finance Limited and another filed a writ petition against the State of West Bengal and others, alleging inaction by the police on a First Information Report (FIR) due to a pending Corporate Insolvency Resolution Process (CIRP). The police filed an affidavit stating that they had initiated a case and served a notice under Section 41A of the Criminal Procedure Code. The accused admitted to procuring a loan of Rs. 25 lakh from the petitioner company. The National Company Law Tribunal (NCLT), Kolkata Bench, had passed an order regarding the CIRP. The petitioners argued that a moratorium does not prohibit criminal proceedings. The police argued that they took sufficient steps in connection with the complaint.

## Issues and analysis

### Issue 1: Whether the declaration of moratorium prohibits continuation of criminal proceedings against the …

**Ratio:** A declaration of moratorium does not necessarily prohibit the continuation of criminal

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**Reasoning:** The court referred to a previous judgment stating that a moratorium does not prohibit

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**Interpretation:** The interpretation of the law is that while a moratorium generally aims to

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**Application:** In this case, the court found that the police had already taken steps before

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## Parties

- **Judges:** SABYASACHI…
- **Appellants:** India Infoline…
- **Respondents:** The State of West…

## Timeline

- **2017-03-30 — Order of Mor…**: Order of moratorium was…
- **2019-04-16 — Unreported J…**: An unreported judgment dated April 16, 2019…

## 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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