# In the matter of Gurmeher Singh Vs. State of U.P. and Another

> HC judgment dated 2024-04-09. Citation: TCN-2024-HC-00104. The applicant, Gurmeher Singh, filed an application seeking to quash an order passed by the…

- **Court:** HC
- **Order date:** 9 Apr 2024
- **Citation:** TCN-2024-HC-00104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/gurmeher-singh-vs-state-of-up-and-another-a11eeb5c

## Summary

### Background

The applicant, Gurmeher Singh, filed an application seeking to quash an order passed by the Additional District & Sessions Judge, Gorakhpur, in a criminal revision, as well as an order passed by the Addl. Civil Judge, Gorakhpur, staying further proceedings in a complaint case. The complaint case was filed under Section 138 of the Negotiable Instruments Act against Saraya Industries Ltd. and others, with Gurmeher Singh being the director of the company. The trial court issued summons to Gurmeher Singh as the active director of the company, which was challenged in revision but rejected. The applicant contended that insolvency proceedings were ongoing against the company under the Insolvency and Bankruptcy Code (IBC), and Section 14 of the IBC prohibits proceedings

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## Facts

Gurmeher Singh, the applicant, is a director of M/s Saraya Industries Ltd. A complaint was filed against the company and its directors, including Gurmeher Singh, under Section 138 of the Negotiable Instruments Act. The trial court issued summons to Gurmeher Singh as the active director of the company. Gurmeher Singh challenged this order in revision, which was rejected. Gurmeher Singh then filed an application seeking to quash the summons, arguing that insolvency proceedings were ongoing against the company under the Insolvency and Bankruptcy Code (IBC). He contended that Section 14 of the IBC imposes a moratorium on proceedings against the company. The opposite party argued that the moratorium only applies to the company and not to the director, who was actively

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## Issues and analysis

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

**Ratio:** The moratorium under Section 14 of the IBC applies only to the corporate debtor and not

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**Reasoning:** The court relied on the Supreme Court's judgment in P. Mohanraj and others vs. M/s Shah

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**Interpretation:** Section 14 of the IBC imposes a moratorium on proceedings against the corporate

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**Application:** In this case, the applicant, Gurmeher Singh, is the director of the company

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## Parties

- **Judges:** Arun Kumar Singh…
- **Appellants:** Gurmeher…
- **Respondents:** SARAYA INDUSTRIES…; State Of…

## Timeline

- **2024-01-12 — Impugned Orde…**: Additional District & Sessions Judge, Gorakhpur, passed an order in Criminal Revision No.…
- **2023-03-23 — Order Passed by Addl.…**: Addl. Civil Judge, Gorakhpur, passed an order staying further proceedings in Complaint…

## 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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