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2026InsolvencyLatestLegalMay 2026Supreme Court

Part III IBC Moratorium & Section 138 NI Act

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Judgment dated 27.5.2026 of the Supreme Court in SLP (Criminal) No.12135 of 2024 of Dineschand Surana  Vs.  UCO Bank with connected matter

The appellant is the former Managing Director of M/s. Surana Power Ltd.

In 2015, the appellant issued the cheque to clear the dues of the respondent Bank.  However, it was dishonoured.

As per the order dated 19.2.2018 of NCLT, SPL is undergoing liquidation.

In 2022, the section 95 petition was admitted against the appellant.

The applications of the appellant for quashing and stay of section 138 complaint were dismissed.

In 2024, personal insolvency application against the appellant was admitted and the moratorium of section 101 IBC started.

In 2025, the liberty to file bankruptcy application was granted and on 12.11.2025 the bankruptcy order was passed.

whether the proceedings for the dishonour of cheque under Sections 138 and 141 of the NI Act respectively, are covered by the moratorium provisions for personal insolvency and bankruptcy under Part-III of the IBC

Whether the moratorium provisions under Part III of the IBC should be made applicable on the entire proceedings under Section 138 of the NI Act or only to the compensatory aspect thereof?

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