The Orissa High Court has held that Directors can’t escape liability for cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881, merely because the company was declared insolvent and a Resolution Professional was appointed under the Insolvency and Bankruptcy Code, 2016.
The Court was considering an Application seeking issuance of summons to the Resolution Professional to represent one accused and to discharge another.
The Bench of Justice Chittaranjan Dash observed, “In view of the above position of law, there remains no ambiguity with respect to the principle propounded by the Hon’ble Supreme Court, namely, that the matter lying before the Resolution Professional pursuant to the order dated 08.11.2024 of the NCLT…