Case Name : Ajay Kumar Radheyshyam Goenka vs Tourism Finance Corporation of India Ltd
Case Reference: (0000) 0 SCR 00 :
Neutral Citation:
Case Number: Crl A 172/2023, Crl A 170-171/2023
Court: Supreme Court
Bench: 03
Coram: Sanjay Kishan Kaul (Author), Abhay S Oka, JB Pardiwala (Concurring)
Date: 15.03.2023
Proceedings under NI Act are penal in nature, it is not recovery of the amount with interest as a debt recovery proceedings would be. It is not akin to suit proceedings. (Para 16)
The process under IBC does not ipso facto apply to extinguishment to criminal proceedings.
Appellant was signatory of the cheque as also the Promoter and Managing Director.
Just because proceedings against the company come to an end does not mean that the Appellant as the Managing Director cannot be proceeded against (Para 18). Proceedings under NI Act - Section 138 are not primarily compensatory in nature. The criminal liability and fines are built on principle of not honouring a negotiable instrument which accepts trade. (Para 18) It is apart from the principal of financial liability per se
Refer also:
Judgment name
See also: IBC - Section 31 IBC - Section 38 IBC - Section 39 IBC - Section 40 IBC - Section 41
PDF: Ajay Kumar Radheyshyam Goenka vs Tourism Finance, Crl A 172-2023 (SC).pdf