Charandeep Singh Jolly Vs C.B. Healthcare Through SPA Hatinder Chawla (Himachal Pradesh High Court)
Himachal Pradesh High Court held that extinguishment of debt under Insolvency and Bankruptcy Code [IBC] wouldn’t ipso facto apply to extinguishment of criminal proceedings under section 138 of the Negotiable Instruments Act [NI Act]. Accordingly, present petition fails.
Facts- The complainant supplied the pharmaceutical product to the accused. The accused issued cheques for ₹6,53,190/-, ₹2,23,299/- and ₹3,93,458/- to discharge their legal liability, however, the same were dishonoured with the endorsement “Exceeds Arrangement”. The complainant issued a notice to the accused asking them to pay the amount within 15 days of the receipt of the notice. The notice was duly served upon the accused, but the accused failed to pay the amount. Hence, the complaint was filed before Trial Court against the accused for taking action as per the law.
Trial court held that there are sufficient grounds to summon the accused for the commission of an offence punishable u/s. 138 of the NI Act. Accordingly, the process was ordered to be issued. Being aggrieved by the filing of the complaint and the order of summoning, the petitioner has filed the present petition for quashing of the complaint.
