# In the matter of Vasan Health care Pvt. Ltd. vs. India Infoline Finance Ltd.

> HC judgment dated 2024-07-24. Citation: TCN-2024-HC-00058. The case involves a criminal original petition filed by M/s.Vasan Healthcare Pvt Ltd to quash…

- **Court:** HC
- **Order date:** 24 Jul 2024
- **Citation:** TCN-2024-HC-00058
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/vasan-health-care-pvt-ltd-vs-india-infoline-finance-ltd-6f4544c7

## Summary

### Background

The case involves a criminal original petition filed by M/s.Vasan Healthcare Pvt Ltd to quash proceedings in C.C.No.310 of 2016 initiated under Section 482 of Cr.P.C. The complaints were filed by M/s.India Infoline Finance Ltd (IIFL) under section 138 of the Negotiable Instruments Act due to dishonored cheques issued by Vasan Healthcare to discharge a loan liability. Subsequently, M/s.Alcon Laboratories filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), leading to the Corporate Insolvency Resolution Process (CIRP) against Vasan Healthcare. The NCLT admitted the company into CIRP on 2017-04-21. A resolution plan was approved by NCLT on 2023-02-03, with M/s.ASG Hospital (P) Ltd taking over the company. The petitioner argued that the

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## Facts

M/s.Vasan Healthcare Pvt Ltd (the petitioner) borrowed a loan from M/s.India Infoline Finance Ltd (IIFL) (the respondent) for purchasing medical equipment. To discharge the liability, the Managing Director/Authorised Signatory of Vasan Healthcare issued cheques that were later dishonored due to 'Funds insufficient'. IIFL filed complaints under Section 138 of the Negotiable Instruments Act against i) the Company, ii) A.M.Arun (Managing Director), and iii) Mrs.Meera (Director). Subsequently, M/s.Alcon Laboratories, another creditor of Vasan Healthcare, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The NCLT admitted Vasan Healthcare into the Corporate Insolvency Resolution Process (CIRP) on 2017-04-21. V.Mahesh was appointed as

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## Issues and analysis

### Issue 1: Whether the existing criminal liability of the Company and its erstwhile Directors will get …

**Ratio:** Section 32-A of the Insolvency & Bankruptcy Code, 2016, restricts the liability of

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**Reasoning:** The court reasoned that the corporate debtor cannot be prosecuted for prior liability

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**Interpretation:** Section 32-A of IBC provides immunity to the corporate debtor from prosecution

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**Application:** In this case, the court applied the ratio and reasoning to quash the criminal

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## Parties

- **Judges:** DR.JUSTICE…
- **Respondents:** M/s.Vasan…; M/s. India…

## Timeline

- **2016-01-01 — Cheque Dishonor and…**: M/s.India Infoline Finance Ltd (IIFL) filed complaints under Section 138 of the…
- **2017-04-21 — NCLT admits Vasan…**: The NCLT admitted M/s.Vasan Healthcare Pvt Ltd into the Corporate Insolvency Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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