Sec 138 NI Act case cannot be quashed for mere Acceptance of Corporate Insolvency Resolution

Ajay Kumar Bishnoi Vs Tap Engineering (Madras High Court) Question is whether by operation of the provisions of Insolvency and Bankruptcy Code, 2016, the criminal prosecution initiated under Section 138 r/w.141 of the Negotiable Instruments Act, 1881 r/w. 200 of Cr.Pc, can be terminated. The categorical answer is “No”. In JIK  Industries Limited vs. Amarlal V.Jumani (2012) 3 SCC 255, the Hon’ble Supreme Court held that sanction of a scheme under Section 391 of the Companies Act, 1956 will not lead to any automatic compounding of offence under Section 138 of the Act without the conse...