Whether an accused can avoid prosecution for dishonour of cheque by filing insolvency petition?

The objectives of Section 138 of the Negotiable Instruments Act is simple that the cheques should not be used by persons as a tool for dishonest purposes and if it is dishonoured, the person is provided with the opportunity to pay the cheque amount and if he still does not pay then the person will be arrayed as an accused and has to face the criminal proceedings. The law related to negotiable instruments cannot be termed as a law related to any one nation or region but it is entirely a law related to the commercial world. The accused who may be an individual or any company these days file an insolvency proceedings and try to evade themselves from the criminal proceedings. The Insolvency and Bankruptcy Code, 2016 does not preclude any individual to proceed against the accused for criminal proceedings. The objective of this article is "Analysis of the statutory provision in cases of dishonor of cheques and its relation with the insolvency proceedings". This article is an attempt which focuses on the points argued by the accused who try to evade from the criminal proceedings and try to take advantage of the insolvency proceedings and the law in relation to the same as settled by the Hon'ble Supreme Court. The philosophy underlying these laws is explained, their main provisions are explored, and future directions that could move the ethic forward and further rationalize the laws are sketched. This work increases our understanding of laws corresponding to Negotiable Instruments and Insolvency Petitions; this project will contribute to future research on similar topics also.