Cheque Dishonour Proceedings Maintainable Against Directors and Signatories Even If Company Is Declared Insolvent: Orissa High Court
The Orissa High Court has dismissed a petition filed by Syed Najam Ahmed, Managing Director of Zenith Mining Private Ltd., seeking discharge from criminal prosecution under Section 138, Negotiable Instruments Act, 1881, despite the initiation of corporate insolvency proceedings against the company. The court ruled that insolvency proceedings do not shield individual directors or signatories of cheques from criminal liability under the N.I. Act. Case based on dishonour of Rs.…
