The Supreme Court upheld the order passed by the Bombay High Court, which held that the Directors of the Company remain liable under Section 138 of the NI Act, even if the Company’s debt is resolved under the Insolvency and Bankruptcy Code, 2016 (IBC/IB Code).
The High Court had summarized various important principles with respect to Section 138 of the Negotiable Instruments Act, 1881 (NI Act).
The Bench of Justice BV Nagarathna and Justice Ujjal Bhuyan observed, “We have heard learned counsel for the petitioners and learned counsel for the respondents at length. We do not find any reason to interfere with the impugned order. Special Leave Petition is hence, dismissed. It is needless to observe that all other contentions on both sides…