Tantia Constructions Ltd vs Titec Finance Ltd
2022 Latest Caselaw 4258 Cal

15.07.2022 Item No.11.

suman Ct.42

CRR 170 of 2022 With CRAN 3 of 2022 Tantia Constructions Ltd.

Vs.

Titec Finance Ltd.

Mr. Swatarup Banerjee, Adv.

Mr. Avishek Guha, Adv.

Sk. Sariful Haque, Adv.

Ms. A. Chopra, Adv.

...for the petitioner.

Mr. Pawan Kumar Gupta, Adv.

Ms. Soma Chakraborty, Adv.

Ms.Sofia Nesar Mr. Santanu Sett ...for the opposite party.

Affidavit-of-service be kept with the record.

This is an application for extension of

interim order.

At the time of hearing, a question cropped

up as to whether the erstwhile Directors of the

Company can be prosecuted in a proceeding under

Section 138/141 of the Negotiable Instruments Act

without impleading the company against whom CIRF

process is going on.

The learned Advocate for the petitioner

refers to a decision of the Hon'ble Supreme Court in

P. Mohanraj & Ors. Vs. Shah Brothers Ispat

Private Limited reported in (2021) 6 SCC 258 in

support of his contention. Paragraph 102 of the said

judgment runs thus:-

"102. Since the corporate debtor would be covered by the moratorium provision contained in Section 14 IBC, by which continuation of Sections 138/141 proceedings against the corporate debtor and initiation of Sections 138/141 proceedings against the said debtor during the corporate insolvency resolution process are interdicted, what is stated in paras 51 and 59 in Aneeta Halda would then become applicable. The legal impediment contained in Section 14 IBC would make it impossible for such proceeding to continue or be instituted against the corporate debtor. Thus, for the period of moratorium, since no Sections 138/141 proceeding can continue or be initiated against the corporate debtor because of a statutory bar, such proceedings can be initiated or continued against the persons mentioned in Sections 141(1) and (2) of the Negotiable Instruments Act. This being the case, it is clear that the moratorium provision contained in Section 14 IBC would apply only to the corporate debtor, the natural persons mentioned in Section 141 continuing to be statutorily liable under Chapter XVII of the Negotiable Instruments Act."

In view of such decision arrived at by the

Hon'ble Supreme Court, this Court can safely hold

that the proceeding under Sections 138/141 of the

Negotiable Instruments Act is maintainable against

the erstwhile Directors.

Interim order of stay which was granted on

17th May, 2022 be extended for a further period of

six weeks.

Matter to appear under the heading 'For

Orders' in the Monthly List of August, 2022.

The opposite party is at liberty to file

affidavit-in-opposition in the meantime and serve

copy of the same to the petitioner.

The petitioner is at liberty to file affidavit-in-

reply, if any, one week from the date of receipt of

affidavit-in-opposition.

CRAN/3/2022 is accordingly disposed of.

(Bibek Chaudhuri, J.)