A bench of Justice Lalit and Justice Bose in the case titled as M/S NAG LEATHERS PVT. LTD. vs M/S DYNAMIC MARKETING on 25.10.2019 has issued notice on the point as to whether complaint of cheque bounce can be initiated where there is a prohibition order by NCLT..
Supreme Court observed as under:
"Mr. Nagamuthu, learned senior advocate appearing for the petitioner submits that a moratorium was issued by NCLT, Division Bench, Chennai while dealing with TCP/73/(IB)/CB/2017 vide order dated 10.7.2017 which inter alia prohibited institution of any suit or continuation of pending suit against the corporate debtor and transferring, encumbering, alienating or disposing of by the corporate debtor of any of its assets or any legal rights or beneficial interest therein.
He further submits that the statutory notice under Section 138 of the Negotiable Instruments Act was issued on 21.12.2017 and reply dated 2.1.2018 disclosed the factum about the moratorium.
Learned counsel, therefore, submits that the proceedings under Section 138 of the Negotiable Instruments Act against the Corporate-debtor could not have been instituted.
Issue notice, returnable on 9.12.2019. Dasti in addition. Pending further consideration, there shall be interim stay of further proceedings in C.C. No.5 of 2018 pending on the file of District Munsif Cum Judicial Magistrate, Ranipet, Tamil Nadu".
Read the Order here:
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