The Bombay High Court held that the moratorium provision under Section 14 of the Insolvency and Bankruptcy Code, 2016 applies only to the Corporate Debtor and the natural persons are liable under Chapter XVII of the Negotiable Instruments Act, 1881 (NI Act).
The Nagpur Bench held thus in a batch of Criminal Applications seeking to quash the criminal cases filed under Section 138 read with 141 of the NI Act.
A Single Bench of Justice Urmila Joshi-Phalke observed, “In para No.77 of the judgment, in the case of P.Mohanraj vs. M/s.Shah Ispat Private Limited supra, the Hon’ble Apex Court observed that for the period of moratorium, since no Section 138/141 proceeding can continue or be initiated against the corporate debtor because of…