Rakesh Rajpal vs Prabha Gandhi
2023 Latest Caselaw 14355 MP

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                                     IN THE HIGH COURT OF MADHYA PRADESH
                                                   AT INDORE
                                                     MP No. 5199 of 2023
                                                  (RAKESH RAJPAL Vs PRABHA GANDHI)

                         Dated : 01-09-2023
                               Shri Ravindra Singh Chhabra, learned Senior Counsel with Shri

                         Abhishek Malviya, learned counsel for the petitioner.
                               Counsel for the petitioner submits that the trial Court as well as
                         Revisional Court have erroneously refused to stay the proceedings under
                         Section 138 of Negotiable Instruments Act. It is submitted that the petitioner is
                         facing proceedings under Insolvency and Bankruptcy Code, 2016 and on his

                         application, an order under Section 96 regarding interim moratorium has been
                         passed and, therefore, the proceedings ought to have been stayed. He submits
                         that both the Courts have erred in holding that the aforesaid provisions would
                         not apply in the case of individual person facing 138 proceedings. It is argued
                         that the Supreme Court in the case of P. Mohanraj & Ors. Vs. Shah Brothers
                         Ispat Private Limited reported in (2021) 6 SCC 258 while interpreting the
                         scope of interim moratorium under the IBC explained that Section 96 includes
                         the phrase "in respect of any debt" which imputes a wider connotation and
                         further relies on para 47 of the said judgment wherein it is held that the interim

                         orders, also applies to the individual person facing proceedings under Section
                         138 of the Negotiable Instruments Act.
                               Considering the aforesaid submissions, issue notice to the respondent(s)

on payment of PF by registered mode within seven days with due acknowledgment, returnable within four weeks, failing which, this petition shall stand dismissed without further reference to the Bench.

As an interim measure, it is directed that the proceedings of Criminal Signature Not Verified Signed by: SOUMYA RANJAN DALAI Signing time: 9/1/2023 4:02:39 PM

Case No. 2496/2018 pending before the Court of JMFC, Indore shall remain stayed.

CC as per rules.

(VIJAY KUMAR SHUKLA) JUDGE

soumya

Signature Not Verified Signed by: SOUMYA RANJAN DALAI Signing time: 9/1/2023 4:02:39 PM