Orissa HC Upholds Criminal Liability of Directors for Dishonoured Cheques Despite IBC Insolvency

Syed Najam Ahmed Vs State of Odisha (Orissa High Court) The case before the Orissa High Court challenged an order of the Judicial Magistrate First Class JMFC that rejected a plea for the discharge of the accused, Syed Najam Ahmed (Managing Director), and the accused company, Zenith Mining Private Ltd., from a criminal complaint under Section 138 of the Negotiable Instruments NI Act, 1881. Background and Legal Issue The complaint was filed by M/s. Dewy Developers Pvt. Ltd. after a cheque for ₹ 1 crore, issued by Zenith Mining Private Ltd. (through its Managing Director as repayment for a frie...