# In the matter of Sachin Goyal and another vs. Rajasthan Trading Co. and another CRM-M-16158-2023

> HC judgment dated 2023-03-29. Citation: TCN-2023-HC-00070. The petitioners invoked the inherent jurisdiction of the High Court under Section 482 of the…

- **Court:** HC
- **Order date:** 29 Mar 2023
- **Citation:** TCN-2023-HC-00070
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/sachin-goyal-and-another-vs-rajasthan-trading-co-and-another-crm-m-16158-2023-a8e9efd3

## Summary

### Background

The petitioners invoked the inherent jurisdiction of the High Court under Section 482 of the Cr.P.C. to quash a complaint bearing No.NACT-1290 of 2022 dated 22.08.2022 titled as “Rajasthan Trading Co. Vs. Shree Om Prime Food Private Limited and others" under Section 138 of the Negotiable Instruments Act, 1881. The complaint was accompanied by a summoning order dated 31.08.2022 and a revisional order dated 12.12.2022 passed by the Sessions Judge, Sirsa, dismissing Revision No.CRR-233 of 2022 titled as “Shreeom Prime Foods Pvt. Ltd. and others Vs. Rajasthan Trading Co.". The petitioners also sought a stay of proceedings before the Trial Court. The petitioners, directors of Shreeom Prime Foods Pvt. Ltd., contended that the company is undergoing a resolution

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## Facts

Sachin Goyal and another (the petitioners) are directors of Shreeom Prime Foods Pvt. Ltd. M/s Rajasthan Trading Co. (the respondent) filed a complaint against the petitioners under Section 138 of the Negotiable Instruments Act, 1881, alleging dishonor of a cheque. The petitioners sought to quash the complaint, arguing that Shreeom Prime Foods Pvt. Ltd. is undergoing a resolution process before the National Company Law Tribunal (NCLT), Jaipur Bench. An interim resolution professional has been appointed. The petitioners contended that the Board of Directors of the company was suspended upon the passing of the admission order by NCLT, and they ceased to be directors. They argued that the interim moratorium applied by the NCLT order prevents independent recovery and

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## Issues and analysis

### Issue 1: Whether during the pendency of the proceedings under the IBC, which have been admitted, the present …

**Ratio:** Proceedings under Section 14 of the IBC are primarily civil in nature, while proceedings

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**Reasoning:** The court relied on the Supreme Court's decision in Ajay Kumar Radheyshyam Goenka vs.

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**Interpretation:** The interpretation of Section 14 of the IBC is that it does not bar criminal

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**Application:** The court applied the ratio and reasoning to the facts of the case, holding

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## Parties

- **Judges:** Manjari Neh…
- **Appellants:** Sachin…
- **Respondents:** Shreeom Prime…; M/s Rajasthan…

## Timeline

- **2022-08-22 — Complaint…**: Complaint bearing No.NACT-1290 of 2022…
- **2022-08-31 — Summoning…**: Summoning order was issued…

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