IBC Proceedings Cannot Shield Directors from Section 138 NI Act Liability

Ortho Relief Hospital And Research Centre Vs Anand Distilleries (Bombay High Court) Case Background and Facts: The present case involves a challenge under Articles 226 and 227 of the Constitution of India by Ortho Relief Hospital and Research Centre (petitioner) against the discharge of respondent directors in a complaint filed under Section 138 of the Negotiable Instruments Act, 1881 (NI Act). The respondents include Anand Distilleries (Company) and its directors, who controlled the company’s financial and business operations. The dispute arose from a short-term loan of Rs. 15 lakh extended...