Dishonour of Cheque--Liability of Directors --Remains Unaffected by Initiation of Liquidation Proceedings Under IBC
Criminal liability under Section 138 of the Negotiable Instruments Act, 1881 subsists against directors of a company notwithstanding the initiation of liquidation proceedings against such company under the Insolvency and Bankruptcy Code, 2016. The commencement of insolvency proceedings and consequent cessation of directorship does not extinguish personal criminal liability of directors for dishonour of cheques issued prior to such proceedings.
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