Moratorium order under Section 14 IBC bars parallel proceedings against Corporate Debtor under Section 138 of NI Act: Supreme Court

The judgment was delivered by a Bench of Justices Rohinton Nariman, Navin Sinha and KM Joseph in an appeal against a July 2018 judgment of the National Company Law Appellate Tribunal (NCLAT).
Moratorium order under Section 14 IBC bars parallel proceedings against Corporate Debtor under Section 138 of NI Act: Supreme Court
Navin Sinha, Rohinton Fali Nariman centre, KM Joseph

The Supreme Court on Monday ruled that when an order of moratorium is passed under the Insolvency and Bankruptcy Code (IBC), parallel proceedings under Section 138 of the Negotiable Instruments Act (NI Act) against the Corporate Debtor cannot be allowed to continue as the same will be covered by the bar under Section 14 of the IBC (P Mohanraj v. M/S Shah Brothers Ispat Pvt Ltd).

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