# In the matter of PVS Memorial Hospital & Ors. Vs. Dr. Satheesh Iype CRL.MC NO. 8157 OF 2022

> HC judgment dated 2023-01-05. Citation: TCN-2023-HC-00092. This is a petition filed by accused Nos.1 to 7 in CMP No.3280/2019 on the files of Judicial First…

- **Court:** HC
- **Order date:** 5 Jan 2023
- **Citation:** TCN-2023-HC-00092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/pvs-memorial-hospital-ors-vs-dr-satheesh-iype-crlmc-no-8157-of-2022-87fa9b37

## Summary

### Background

This is a petition filed by accused Nos.1 to 7 in CMP No.3280/2019 on the files of Judicial First Class Magistrate Court (Negotiable Instruments Act Cases), Ernakulam, to quash the above CMP (Annexure-A complaint herein) by invoking power under Section 482 of the Code of Criminal Procedure. The complaint was lodged under Section 142 of the Negotiable Instruments Act alleging that the accused committed an offence punishable under Section 138 of the N.I.Act, since the cheque jointly issued by accused Nos. 2 to 7 representing the 1st accused for Rs.37,20,000/- got dishonored for want of funds, when the cheque was presented for collection.

## Facts

The complainant, Dr. Satheesh Iype, lodged a complaint under Section 142 of the Negotiable Instruments Act before the Magistrate Court. The complaint alleged that accused Nos. 1 to 7 committed an offence punishable under Section 138 of the N.I.Act. The basis of the complaint was that a cheque for Rs.37,20,000/- jointly issued by accused Nos. 2 to 7, representing the 1st accused (PVS Memorial Hospital), was dishonored due to insufficient funds. The 1st accused, PVS Memorial Hospital, is a multi-specialty hospital in Ernakulam. The 2nd accused is the Managing Director, and accused Nos. 3 to 7 are the directors of the 1st accused company. A moratorium order under Section 14(1) of the IBC has been passed in relation to PVS Memorial Hospital Private Ltd., the 1st

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## Issues and analysis

### Issue 1: Whether the moratorium under Section 14 (1) of the Insolvency and Bankruptcy Code, 2016 would apply …

**Ratio:** The moratorium provision contained in Section 14 of the IBC applies only to the corporate

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**Reasoning:** The court relied on the legal position settled by the Three Bench of the Apex Court in P.

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

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**Application:** In this case, the moratorium applies to PVS Memorial Hospital Private Ltd. (the

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## Parties

- **Judges:** A. BADHAR…
- **Appellants:** M/S PVS MEMORIAL…
- **Respondents:** PVS Memorial…; SATHEESH…

## Timeline

- **2019-03-29 — Complaint…**: The complainant filed a complaint before the Judicial First Class Magistrate Court…
- **2019-10-16 — NCLT Ord…**: True copy of the order of…

## 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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