Punjab & Haryana High Court: In a petition filed under Section 482, Criminal Procedure Code (CrPC), 1973, seeking quashing of a complaint under Sections 138 and 141, Negotiable Instruments Act, 1881 (NI Act) on the ground that the accused-company had subsequently undergone the corporate insolvency resolution process (CIRP) and liquidation under the Insolvency and Bankruptcy Code, 2016 (IBC), the Single Judge Bench of Manisha Batra, J., dismissed the petition, holding that subsequent insolvency proceedings cannot efface or obliterate criminal liability already crystallised upon dishonour of cheques, and that prosecution of the persons in-charge remains maintainable despite the moratorium or liquidation.
Background
The…