# In the matter of G.Ajay Agarwal Vs. M/s. Bhagwandas and Co. Crl.MP-15550/2018

> HC judgment dated 2022-09-28. Citation: TCN-2022-HC-00020. The Criminal Original Petition was filed under Section 482 of Cr.P.C. to quash the C.C.No.899 of…

- **Court:** HC
- **Order date:** 28 Sept 2022
- **Citation:** TCN-2022-HC-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/gajay-agarwal-vs-ms-bhagwandas-and-co-crlmp-155502018-5fd0a976

## Summary

### Background

The Criminal Original Petition was filed under Section 482 of Cr.P.C. to quash the C.C.No.899 of 2018 pending on the file of the IV Fast Track Court (Magistrate Level) at George Town, Chennai. The respondent had filed a private complaint under Section 190 of Cr.P.C. against the petitioner and 2 accused persons, before the learned IV Fast Track Judge at George town, Chennai, for alleged offence under Section 138 of Negotiable Instruments Act, 1881. The respondent/complainant, a partnership firm, approached the 1st accused company for supply of 60 metres of TMT bars within a period of 3 months and remitted Rs.25,00,000/- as an advance payment to the bank of 1st accused. The 1st accused company even after the receipt of the advance payment of Rs.25,00,000/- had failed to

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## Facts

M/s.Bhagwandas and Co., a partnership firm, required TMT bars and approached the 1st accused company for supply of 60 metres of TMT bars within 3 months. The firm remitted Rs.25,00,000/- as advance payment to the bank of 1st accused. The 1st accused company failed to supply the 60 Meters of TMT bars. The 1st accused company as a part payment paid Rs.10,00,000/- to the respondent-complainant along with Rs.65,464/- as interest on 19.03.2015. By the end of 31.12.2017 the amount due which alleged to have been paid to the respondent/complainant stands as Rs.23,64,570/- i.e. Rs.15,00,000/- as principal amount and Rs.8,64,570/- as interest. On 29.12.2017, the second accused namely one Ankit Agarwal on behalf of the 1st accused company issued a cheque for Rs.15,00,000/- and on

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## Issues and analysis

### Issue 1: Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act can be …

**Ratio:** The Hon'ble Supreme Court in P.Mohanraj's case held that proceedings under Section 138 of

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**Reasoning:** The court relied on the Supreme Court's decision in P.Mohanraj's case, which

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**Interpretation:** Section 14 of the Insolvency and Bankruptcy Code imposes a moratorium on

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**Application:** In this case, the court applied the ratio to hold that proceedings against the

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## Parties

- **Judges:** RMT.TEEKAA…
- **Appellants:** G.Ajay Ag…
- **Respondents:** M/s. Ashok…; M/s.Bhagwandas…

## Timeline

- **2015-03-19 — Part Payment by 1st…**: The 1st accused company paid Rs.10,00,000/- to the respondent-complainant along with…
- **2017-09-04 — Judgment by Company Law…**: Judgment delivered by the Company Law tribunal in proceedings initiated under Section 7…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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