NAG LEATHERS PVT LTD Vs. SAROJ LEATHERS

JUDGEMENT

(1.) This petition has been filed against the proceedings in on the file of the learned District Munsif cum Judicial Magistrate, Ranipet, Vellore District.

(2.) The learned counsel for the petitioner submitted that the petitioner is the accused in the criminal proceedings initiated by the respondent for the offences punishable under Section 138 r/w 141 and 142 of Negotiable Instruments Act. The petitioner issued post dated cheque in favour of the respondent for discharge of their debts arising out of supply of wet blue stock for a sum of Rs.73,51,408/-. It was presented for collection and was returned dishonoured for the reason that 'funds insufficient'. After causing statutory notice, the respondent initiated proceedings under the Negotiable Instruments Act. He further submitted that the petitioner categorically replied for the statutory notice stating that the company M/s.Nag Leathers Private Limited was already taken over by the Interim Insolvency Resolution Professional as per the Order of National Company Law Tribunal, Division Bench, Chennai. He further submitted that one of the creditors filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal, Division Bench, Chennai, wherein the Interim Insolvency Resolution Professional was directed to take charge of the petitioner's Corporate Debtor's management immediately and also directed to cause public announcement as prescribed under Section 14 of the Insolvency and Bankruptcy Code, 2016 within three days. As such the institution of suits are continuation of suits or proceedings against the Corporate Debtor are barred after the Order of National Company Law Tribunal.

(3.) He further submitted that one, Mr.C.Ramasubramaniam was appointed as Interim Resolution Professional and made public announcement requesting all financial Creditors to submit their claims. In fact, the respondent submitted their claim and as such the proceedings initiated under Section 138 of Negotiable Instruments Act cannot be sustained against the petitioner. He further submitted that the alleged cheque was issued as security purpose and there is no legally enforceable debt over the respondent and as such the petitioner is not at all liable to pay anything to the respondent. Therefore, he prayed for quashment of the entire proceedings in S.T.C.No.76 of 2017.