No NI Act Section 138 Case Against Ex-Director if Cause Arose Post-IBC Moratorium: SC

No NI Act Section 138 Case Against Ex-Director if Cause Arose Post-IBC Moratorium: SC

The Supreme Court, under Section 482 CrPC, quashed proceedings against the director, ruling that continuing the case would be unjust since the director had no control over the company's affairs post-moratorium. The court emphasized that an offence under Section 138 of the NI Act materializes only after the 15-day period following the demand notice, not merely upon cheque dishonour. This judgment clarifies that the timing of the moratorium is crucial in determining a director's liability under the NI Act.

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