TAYAL COTTON PVT LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Rule. Rule is made returnable forthwith. With the consent of both sides, the matter is heard finally at the stage of admission.

(2.) A very short question that arises for determination in this proceeding is as to whether moratorium prohibiting institution of a proceeding as provided for in Section 14 of the Insolvency and Bankruptcy Code, 2006 (hereinafter referred to as Code) applies even to a criminal proceeding.

(3.) The facts as are necessary to be delineated are to the effect that the petitioner company instituted a complaint under Section 138 of the Negotiable Instruments Act (hereinafter referred as N.I.Act for short) bearing SCC No.3197/2016 against the respondent no.2 company and the respondents 3 to 7 who are its Managing Director and Directors, in respect of a cheque for an amount of Rs.15,58,612/- issued by respondents 2 to 7 towards discharge of a civil liability. The learned Magistrate issued process under Section 204 of the Code of Criminal Procedure. Being aggrieved, the respondents 2 to 7 challenged the order of issuance of process by preferring Criminal Revision No.147/2016.