# In the matter of Ganesh Chandra Bamrana and Ors. vs. Rukmani Gupta & Ors.

> HC judgment dated 2024-12-17. Citation: TCN-2024-HC-00006. The petitions were filed seeking the quashing of a summoning order dated 2022-04-01 passed by the…

- **Court:** HC
- **Order date:** 17 Dec 2024
- **Citation:** TCN-2024-HC-00006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/ganesh-chandra-bamrana-and-ors-vs-rukmani-gupta-ors-65f6b03b

## Summary

### Background

The petitions were filed seeking the quashing of a summoning order dated 2022-04-01 passed by the Metropolitan Magistrate in CC No. 9170/2020 for an offense under Section 138 of the Negotiable Instruments Act, 1881. The petitioners, being the suspended director and authorized signatory of the accused company, had issued six cheques in compliance with an order passed by the National Consumer Disputes Redressal Commission. Subsequently, two cheques were honored, but later, during the Corporate Insolvency Resolution Process (CIRP), cheques were dishonored due to 'Drawer Signature to operate account not received'. The respondent filed a complaint, leading to the summoning order.

## Facts

Ganesh Chandra Bamrana and others filed petitions seeking to quash a summoning order dated 2022-04-01 issued by the Metropolitan Magistrate for an offense under Section 138 of the Negotiable Instruments Act, 1881. Ganesh Chandra Bamrana was the suspended director, and another petitioner was the authorized signatory of a company that issued six cheques in compliance with an order from the National Consumer Disputes Redressal Commission. Two cheques were initially honored, but later, two cheques dated 2020-01-15 and 2020-03-15 were dishonored due to 'Drawer Signature to operate account not received'. Prior to the dishonor, the company was admitted into Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016, and a

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## Issues and analysis

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

**Ratio:** Proceedings under Section 138 of the NI Act against the corporate debtor cannot continue

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**Reasoning:** The court relied on a coordinate bench decision in Govind Prasad Todi & Anr. V. Govt.

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**Interpretation:** The interpretation of Section 14 of the IBC is that it imposes a moratorium on

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**Application:** In this case, the court applied the ratio to the facts and found that the

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## Parties

- **Judges:** Amit Ma…
- **Appellants:** GANESH CHANDRA…
- **Respondents:** RUKMANI…
- **Other parties:** Kohi…
- **Advocates:** P.S. Bi…

## Timeline

- **2022-04-01 — Summoning…**: Summoning order passed by the Metropolitan Magistrate in CC No. 9170/2020 for the offence…
- **2019-07-24 — Order by National Consumer Disputes Redressal…**: Order passed by the National Consumer Disputes Redressal Commission in Execution…

## 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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