The Hon'ble Supreme Court has, vide its judgements in Narinder Garg vs. Kotak Mahindra Bank, has held that the moratorium declared under the IBC under Section 14 of that Code, applies only against the Corporate Debtor, and does not save its Directors from a prosecution under Section 138, Negotiable Instruments Act. The Hon'ble Court relied upon the judgement in P. Mohandas vs. Shah Brothers Ispat (2021).
The Hon'ble Supreme Court has, vide its judgements in Don Ayengia and Sripati Singh, held that 'security' cheques may as well attract liability under 138 NI Act, since a 'security' cheque becomes encashable upon failure of the accused to live up to the payment deadlines.
The Hon'ble Supreme Court has, vide its judgements in Asst. Director of Inspection vs. A.B. Shanthi , held that Section 269-SS, Income Tax Act, does not declare all transactions of loan in excess of INR 20,000/- as invalid, illegal, null or void, as the object of the said provision is to only unearth the black money, and not to declare such transactions as illegal. Further, the Hon'ble Supreme Court also noticed that Section 271-D and 273B clarifies the position that the intent is not for declaring such cash transactions as illegal.
The aforesaid judgement was also relief upon by the Hon'ble High Court of Delhi in Dilip Chawal vs. Ravinder Kumar (2017) in a matter relating to cheque dishonour under the Negotiable Instruments Act.
A non-executive director is a member of a company's board of directors who is not part of the executive team. A non-executive director typically does not engage in the day-to-day management of the organization but is involved in policymaking and planning exercises. An independent director is also a non-executive director who does not have any pecuniary relationship with the company, its promoters, and senior management or affiliate companies, is not related to promoters or the senior management, and/or has not been an executive with the company.
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