New Delhi, May 2 -- The Supreme Court has dismissed a Special Leave Petition challenging a Bombay High Court ruling that criminal liability under cheque bounce law continues even after liquidation proceedings under the Insolvency and Bankruptcy Code (IBC), 2016.

A Bench of Justices B.V. Nagarathna and Ujjal Bhuyan declined to interfere with the High Court's decision, which had set aside the discharge of the accused directors.

The Court clarified that all arguments on merits remain open before the trial court.

Case Background

The dispute arose from a Rs 15 lakh loan allegedly taken by the accused from Ortho Relief Hospital and Research Centre. A post-dated cheque issued in December 2018 was dishonoured, leading to criminal proceedings ...