Supreme Court stays coercive action against insolvent guarantors in 11 pending criminal cases under NI Act and PSS Act; Issues notice
The case raises a critical legal intersection between debt recovery prosecutions and the insolvency resolution framework. A ruling that could reshape how courts handle cheque dishonour and payment-related offences against financially distressed individuals who are already undergoing insolvency proceedings, thereby preventing procedural overlap from undermining the statutory “fresh start” promised by the IBC.