Corporate Insolvency Doesn’t Shield Directors From Cheque-Dishonour Liability : Himachal Pradesh HC:

The Himachal Pradesh High Court has ruled that personal criminal liability of directors under Sections 138/141 of the Negotiable Instruments Act continues even after a company undergoes liquidation under the Insolvency and Bankruptcy Code, 2016.

The court clarified that while IBC extinguishes corporate debt, individual criminal liability for cheque dishonour remains enforceable against directors personally involved in the offence.