The case involves an appeal against an order of the Punjab and Haryana High Court, which dismissed the appellant's petition seeking to quash proceedings initiated under Section 138 of the Negotiable Instruments Act, 1881. The appellant, a director of M/s Xalta Food and Beverages Private Limited (the corporate debtor), was facing proceedings due to dishonored cheques issued to M/s Shakti Trading Company (the respondent). Insolvency proceedings had commenced against the corporate debtor, and a moratorium was imposed under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC). The appellant argued that the proceedings under Section 138 of the NI Act could not have been initiated against him due to the moratorium.
Vishnoo Mittal, the appellant, was a director of M/s Xalta Food and Beverages Private Limited, referred to as the 'corporate debtor'. The corporate debtor had a business relationship with M/s Shakti Trading Company, the respondent, where the respondent acted as a super stockist. As part of this relationship, the appellant issued eleven cheques totaling Rs. 11,17,326/- to the respondent. These cheques were dishonored on 07.07.2018. The respondent issued a legal notice to the appellant under Section 138 of the Negotiable Instruments Act (NI Act) because the cheque amounts were not furnished. In September 2018, the respondent filed a complaint against the appellant under Section 138 of the NI Act. Meanwhile, on 25.07.2018, insolvency proceedings commenced against the
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Eleven cheques issued…
Insolvency proceedings commenced against the…
The case involves an appeal against an order of the Punjab and Haryana High Court, which dismissed the appellant's petition seeking to quash proceedings initiated under Section 138 of the Negotiable Instruments Act, 1881. The appellant, a director of M/s Xalta Food and Beverages Private Limited (the corporate debtor), was facing proceedings due to dishonored cheques issued to M/s Shakti Trading Company (the respondent). Insolvency proceedings had commenced against the corporate debtor, and a moratorium was imposed under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC). The appellant argued that the proceedings under Section 138 of the NI Act could not have been initiated against him due to the moratorium.
Vishnoo Mittal, the appellant, was a director of M/s Xalta Food and Beverages Private Limited, referred to as the 'corporate debtor'. The corporate debtor had a business relationship with M/s Shakti Trading Company, the respondent, where the respondent acted as a super stockist. As part of this relationship, the appellant issued eleven cheques totaling Rs. 11,17,326/- to the respondent. These cheques were dishonored on 07.07.2018. The respondent issued a legal notice to the appellant under Section 138 of the Negotiable Instruments Act (NI Act) because the cheque amounts were not furnished. In September 2018, the respondent filed a complaint against the appellant under Section 138 of the NI Act. Meanwhile, on 25.07.2018, insolvency proceedings commenced against the
…Eleven cheques issued…
Insolvency proceedings commenced against the…