I&b code 2016 & negotiable instrument act 138
Sunil Chaudhary
(Querist) 22 August 2017
This query is : Resolved
Dear All Experts I need your help & Guidance regarding a Query
I was Ex-Director of a Pt. Ltd Company and during ongoing operations of the Company we 4 Directors were taking care of running the Business on behalf of promoters who were based in London. We 4 Directors were on Wages to take care of operations of the business and our salary is due for the last 1 year and so for employees, payments to suppliers, dues for tax departments etc.,
Since last year there were disputes among promoters and the financial aid to the company was stopped and company started struggling for the business due to non-availability of funds . Due to pressure of Suppliers and to somehow keep on business running we have issued Cheques to "Operational Creditors" as PDC's to repay their payment but we cudn't repay due to non-availability of funds / non-support from promoters based out at london. One fine day the employees did strike at our company and forcefully closed the operation and we 4 directors have to face consequences and police case against us.
Meanwhile one of the Operation creditor / supplier filed I&B 2016 at NCLT Ahmadabad against our Company in April 2017. "Operational Creditor" had made petition under NCLT Ahmadabad against our Company for Insolvency & Bankruptcy for which we received the Order Copy on 10th April, 2017 from NCLT. The IRP - Interim Resolution Professional was appointed and the public notice was issued in newspapers for all the operational & Financial creditors to submit their claims on or before 3rd May, 2017.
Suddenly, as the Liquidation process is on for the Company and the IRP is involved in valuating the assets of our company and recovering due payments form our clients, few of the Operational creditors have started filing 138 for Cheque bounces against us through Negotiable Instrument Act in individual names of Directors or against the one who signed the cheques (minimum 2 Signatories). I personally have 9 cases as of now of 138 against me within a span of 1 month time now...
Request you to kindly help me to overcome the situation because i do not have individual capacity to pay for the cheques which are bounced as i myself have not received my own Salary for the last 13 months of my job. .
We did not had other options but to accept the order from NCLT becuase non of the directors had capacity to pay. The order depicts "MORATORIUM" Period until the IRP comes with final resolution in our case or until 180 days. But this 138 cases against us are harassment to us.and we are unable to understand why Operationa Creditors are doing so, becuase on one hand they have raised their claim and on the other hand they are doing 138 cases against us. What would happen once they get their payment after liquidation of our company, do they want dual payments i.e. one from Liquidation process and other from us ??
We are completely in soop because we are dealing with such 138 cases individually and this seems unstoppable with such increasing numbers. Is there any way out to deal such dual consequences. Can we apply "Moratorium" against 138 cases in NCLT or can file petition in NCLT for the negotiable instrument act or any other way out to deal such situation.
Kindly guide and suggest remedy please !!
Dr J C Vashista
(Expert) 24 August 2017
Too long a story, be brief and precise for taking benefit of expertise of members on this site doing Social service FREE OF COST.
For such commercial problems/disputes you can afford to hire professional services of a local prudent lawyer, which you should have engaged.
