CRIMINAL MATTERS INVOLVING BOUNCED CHECKS ARE NOT RESOLVED VIA THE IBC PROCEDURE: THE SUPREME COURT OF INDIA The Supreme Court of India was approached by the appellant who argued that Section 138 of the Negotiable Instruments Act, 1881, loses its footing after the relevant debt has been discharged via Insolvency and Bankruptcy Code. It was noted that the National Company Law Appellate Tribunal had accepted the insolvency claim. The Court said at the outset that the scope of proceedings under the two Acts was quite distinct and did not overlap. The Court emphasised that Section 138 procedures are not recovery or suit processes, but rather are of a criminal nature. The Apex Court held that anyone accused of check dishonour would remain criminally liable even if they initiated bankruptcy proceedings. With a team of Commercial Law experts, Reddy & Reddy Law Firm has extensive experience and involvement in commercial disputes, including Insolvency Proceedings. We are regularly involved in representations before NCLT, NCLAT, DRT and other commercial tribunals in India.