Moratorium Archives

Clauses in Information Brochure based on statutory Master Circular is enforceable; Bombay High Court sets aside Administrator decision to write down AT-1 bonds once Yes Bank stood reconstituted

The clauses in the Information Memorandum are based on the Master Circular which is issued by the Reserve Bank under its statutory powers. Information Memorandum and its clauses refer to Master Circular. The said Information Brochure has a statutory flavour. In that event, the agreement would have a statutory base and such an agreement can certainly be enforceable.

Case Briefs High Courts

Approval of a Resolution Plan does not ipso facto discharge a Personal Guarantor of a Corporate Debtor of his liabilities under Contract of Guarantee; Allahabad High Court reiterates

Allahabad High Court said that challenge to demand notice for electricity dues, issued jointly in name of Directors of the insolvent company cannot be sustained on the ground that liabilities of guarantor stood automatically discharged on acceptance of Resolution Plan.

Case Briefs High Courts

Order of stay/moratorium under the Companies Act, 2013 prohibits the initiation of any proceedings; Parties cannot be referred to Arbitration: Delhi High Court

The Delhi High Court ruled that the moratorium granted by the NCLAT, staying the institution of suits and proceedings against the Corporate Debtor, after the resolution process was initiated against it under Sections 241 and 242 of the Companies Act, 2013, was akin to an order of moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016.

Case Briefs High Courts

Delhi High Court | Review is permissible against an order dismissing a petition under S. 11 of the Arbitration and Conciliation Act

While exercising the power conferred by Section 11 of the Act, the Court ceases to be a Court of Record and the review or reopening of proceedings which is sought is not with respect to any power exercised by the Court under Section 11 on merits but on account of the evident factual mistake in that order.

Case Briefs High Courts

Delhi High Court | PMLA seeks to subserve a larger public policy imperative; Moratorium under S.14 IBC does not affect ED’s attachment power under PMLA

An order of attachment when made under the PMLA does not result in the corporate debtor or the Resolution Professional facing a fait accompli.

Case Briefs High Courts

Interim moratorium under S. 96 IBC in respect of one of the guarantors would not ipso facto apply against a co-guarantor; Delhi HC stays suit in view of bar under S.96 IBC

Delhi High Court: In two separate suits filed seeking recovery of amount from the defendants, being ex- promoters and personal guarantors of

Case Briefs Supreme Court

‘Right to establish an educational institution is a fundamental right’; Pharmacy Council of India can only impose moratorium by way of a law and not by execution instruction: SC

Supreme Court: The bench of BR Gavai* and PS Narasimha, JJ has held that the right to establish an educational institution is

Op Eds OP. ED.

WTO E-Commerce Moratorium: An Uncanny Impasse and Eternal Conundrum for Developing Nations

by Saurabh Sharma†

Case Briefs Supreme Court

IBC prevails over Customs Act once moratorium is imposed; CBIC has limited jurisdiction, cannot initiate recovery of dues: Supreme Court

Supreme Court: The 3-judge bench of NV Ramana*, CJ and JK Maheshwari and Hima Kohli, JJ has held that the Insolvency and

Case Briefs Tribunals/Commissions/Regulatory Bodies

Entertainment City Ltd an ‘affiliate’ of United Group; NCLAT grants Moratorium Benefits

National Company Law Appellate Tribunal, New Delhi: The Bench of Ashok Kumar Bhushan, J., Chairperson, M. Satyanarayana Murthy, J., Judicial

Case Briefs Supreme Court

IBC| Once CIRP is initiated and moratorium is ordered, proceedings under SARFAESI Act cannot continue: Supreme Court

Supreme Court: The bench of L. Nageswara Rao and BR Gavai*, JJ has held that the proceedings under the Securitisation and Reconstruction

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLT| Ongoing or fresh debt related legal proceedings against personal guarantor should remain stayed during interim moratorium period

National Company Law Tribunal, Kolkata Bench I: The Bench of Rajasekhar V.K., judicial member and Balraj Joshi, technical member has held that

Case Briefs High Courts

Chh HC | Whenever substantive obligation/rights/ interests are impaired/adversely affected through any piece of subordinate legislation, then its source must be traced within express provisions in four corners of parent enactment

Chhattisgarh High Court: Sam Koshy P, J., allowed the petition and quashed the impugned orders imposing a moratorium on the establishment of

Case Briefs Tribunals/Commissions/Regulatory Bodies

National Company Law Tribunal orders insolvency proceedings against Supertech: Indebted and defaulted repayment of loan

National Company Law Tribunal, New Delhi: The Coram of P.N. Prasad, Judicial Member and Rahul Bhatnagar, Technical Member, declared insolvency proceedings against

Case Briefs Supreme Court

5-year moratorium on new Pharmacy Colleges: Chh HC’s interim order directing PCI to consider application for affiliation stayed; Matter to be disposed of in 4 weeks: SC

Supreme Court: In a case related to PCI’s decision to impose 5-year moratorium on the opening of new Pharmacy Colleges for degree

Case Briefs High Courts

Whether proceedings under Ss. 138 and 141 of NI Act can be initiated against corporate debtor during moratorium period? Madras HC answers

Madras High Court: N. Sathish Kumar, J., while addressing a matter with regard to the dishonour of cheques under Section 138 of

Case Briefs High Courts

Chh HC directed orders against moratorium/ban on the opening of the new Colleges and Institutions for imparting B. Pharma and D. Pharma courses in the entire Country for a period of five years

Chhattisgarh High Court: P. Sam Koshy allowed the interim application and stated that the final approval and permission is subject to the

Case Briefs Tribunals/Commissions/Regulatory Bodies

Attachment of Bank Accounts of a Corporate Debtor: Is it violative of S. 14 of IBC during pendency of Corporate Insolvency Resolution Process? NCLT explains

National Company Law Tribunal, Mumbai Bench: The Coram of H.V. Subba Rao, Judicial Member and Chandra Bhan Singh, Technical Member directed that

Case Briefs Tribunals/Commissions/Regulatory Bodies

NCLT | Debt acknowledged in emails, CIRP initiated resultantly-Appoints IRPM and declares moratorium

National Company Law Tribunal, New Delhi Bench, New Delhi –The Coram of P.S.N Prasad, Judicial Member and Narender Kumar Bhola, Technical Member

Case Briefs Tribunals/Commissions/Regulatory Bodies

Whether S. 7 IBC petition is maintainable where financial creditor fails to enclose financial contract/documents along with the petition: NCLT examines

National Company Law Tribunal (NCLT): Coram of Judicial Member Ashok Kumar Borah and Technical Member Shyam Babu Gautam has admitted a petition