Director Liability in Cheque Bounce Case Post - IBC Resolution | Supreme Court Judgment | NyayTantra

Does the approval of a Resolution Plan under the Insolvency and Bankruptcy Code (IBC) extinguish the criminal liability of a Director in a Cheque Bounce case?

👉 A recent landmark judgment by the Hon'ble Supreme Court has settled this critical issue. This video explains the case of Ajay Kumar Radheyshyam Goenka vs. Tourism Finance Corporation of India Ltd., where the Apex Court ruled that directors cannot hide behind corporate insolvency to escape penal consequences under Section 138 of the Negotiable Instruments Act.

▶️ In this detailed legal analysis, you will learn:
● The Conflict: Can a Director claim discharge from a criminal case (Section 138) because the company's debt was settled under an IBC Resolution Plan?
● The Arguments: Why the accused director argued that "extinguishment of debt ends the offence" and how the complainant countered that Section 138 is a penal, not civil, proceeding.
● Supreme Court's Verdict: The Court's clarification that Section 138 proceedings are criminal in nature and independent of civil debt recovery.
● Role of Section 32A IBC: How the second proviso to Section 32A(1) explicitly continues the liability of designated partners and officers in default, even if the company's liability ceases.
● Guarantor Analogy: How the Court compared a Director's liability to that of a personal guarantor—corporate discharge does not absolve personal liability.

Key Takeaway: This judgment reinforces that the IBC is for resolving corporate debt, not for directors to escape personal criminal accountability for dishonoured cheques.


📌 Additional Resources:
📜 Read Our Website Article: https://nyaytantra.com/cheque-dishono...
📜 Negotiable Instruments Act, 1881: https://nyaytantra.com/negotiable-ins...
🔗 Cheque Bounce Matters | NI Act | 138 Case Playlist:    • Cheque Bounce Case | 138 NI Case | Step by...  
🔗 Supreme Court & High Court Judgement Playlist:    • Filing an Appeal vs. Revision Petition at ...  

📧 Email: [email protected]
🌐 Website: https://nyaytantra.com
📞 +91-9910092805

Don't forget to LIKE this video, SUBSCRIBE for more insightful legal content, and hit the notification bell! 🔔

Disclaimer: This video is for informational purposes only and does not constitute legal advice.
____________________________________________________

📆 If you have any Specific Query, Book an Appointment: https://calendar.app.google/rqViFGHge...
🔗 Connect with me on LinkedIn:   / ankush-mahajan-advocate  
🔗 Follow me on Twitter: https://x.com/mahajanankush