High Court of Bombay at Nagpur Allows Petition Against Stay of Section 138 NI Act Proceedings Due to Insolvency Moratorium — Directors Not Entitled to Protection Under IBC as They Are Not Corporate Debtors. The court held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not extend to directors of a corporate debtor, and criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 against them cannot be stayed....
The petitioner, a partnership firm, filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 against the respondents, who are a company (accused no.1) and its directors (accused nos...
