Insolvency Filing No Shield from Cheque Dishonour Prosecution: SC

Rakesh Bhanot Vs Gurdas Agro Pvt. Ltd (Supreme Court of India) The Supreme Court of India, in Rakesh Bhanot v. Gurdas Agro Pvt. Ltd. and connected matters, examined whether criminal proceedings under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 (NI Act), should be stayed when an interim moratorium under Section 96 of the Insolvency and Bankruptcy Code, 2016 (IBC) comes into effect upon the filing of personal insolvency applications under Section 94 IBC. Since multiple appeals raised identical issues, they were heard together and disposed of by a common judgment. Th...