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Delhi HC holds directors not liable under Section 138 NI Act where cheques are dishonoured due to account blockage after IBC moratorium.
Cheque dishonour during insolvency does not always attract criminal liability. The Delhi High Court clarifies the scope of Section 138 NI Act where accounts are blocked due to IBC proceedings. The intersection of cheque dishonour proceedings under Section 138 of the Negotiable Instruments Act, 1881 and insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) has been a recurring area of litigation. In a significant decision delivered on 16 December 2025 ,
Supreme Court Cracks Down on Cheque Bounce Case Backlog: New Guidelines Issued
Supreme Court issues guidelines for expeditious disposal of cheque dishonor/bounce cases
Supreme Court: Payee’s Bank Branch Decides Jurisdiction for 138 NI Act Complaints
upreme Court rules that jurisdiction in cheque dishonour cases under Section 138 NI Act lies with the court where the payee’s bank branch is located, reaffirming Section 142(2)(a)
Understanding Legal Notice: A must in Resolving Disputes & protecting your rights
Legal notice is must in resolving your dispute. It is essential that one takes legal advice and help for issuing the same. It establishes cause, demonstrates diligence and promotes settlement
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