IBC Proceedings Don’t Bar liability for bounced Cheque: Madhya Pradesh HC

Anurodh Mittal Vs Rehat Trading Company (Madhya Pradesh High Court) In a landmark decision, the Madhya Pradesh High Court ruled in the case of Anurodh Mittal vs. Rehat Trading Company that the initiation of proceedings under the Insolvency and Bankruptcy Code (IBC) does not exempt a signatory of a cheque from liability under the Negotiable Instruments Act (NI Act). This verdict clarifies the interplay between insolvency proceedings and criminal liability for cheque dishonor, reinforcing the distinct nature of the two legal frameworks. Detailed Analysis The case revolved around Anurodh Mittal, ...