In Brief
M/s. Nag Leathers Pvt. Ltd, a corporate debtor subject to a moratorium issued by the NCLT in insolvency proceedings, challenged criminal proceedings filed against it under Section 138 of the Negotiable Instruments Act. The Supreme Court held that a corporate debtor cannot be prosecuted under Section 138 once a moratorium is in force. The exception allowing proceedings against natural persons in-charge of the company applies only when such persons are named as accused; here, only the corporate entity was sued, so all proceedings were quashed. Appeal allowed.
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