No S.138 NI Act Case Against Ex-Director Of Company When Cause Of Action Arose After IBC Moratorium Was Declared: Supreme Court

The Supreme Court has ruled that no Section 138 NI Act case can be filed against an ex-director of a company when the cause of action arose after an IBC moratorium was declared. This decision clarifies the interplay between the Negotiable Instruments Act and the Insolvency and Bankruptcy Code. The court's ruling emphasizes the importance of respecting the moratorium period under the IBC. This judgment provides clarity on the legal framework for cheque bounce cases in insolvency situations.