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A paper mill’s new owner took over under an approved resolution plan, but the electricity board still wanted over ₹2.5 crore in old dues and surcharges before switching the power back on. The Calcutta High Court said the clean slate principle doesn’t have exceptions for electricity bills.
The High Court object of the moratorium is merely to postpone civil debt enforcement and not to shield an accused from criminal accountability arising out of dishonour of cheques.
With expenditure claimed at 75—77% of project cost against actual physical progress of only 48.13%, the Authority ordered a limited forensic audit of the Avalon Royal Park project, distinguishing the RERA audit from IBC insolvency audit provisions and holding that the two frameworks can operate harmoniously without conflict.
“The Statement of Object and Reasons of the Code says that the aim is to improve ease of doing business and facilitate more business leading to higher economic growth and development.”
Invocation of insolvency proceedings or the moratorium under the Insolvency and Bankruptcy Code, 2016 cannot become a legal device to indefinitely stall redevelopment. The IBC was never intended to be used as a shield for non-performance at the cost of human rehabilitation.
“It made no difference whether the NI Act proceedings were initiated prior to initiation of IBC proceeding or thereafter as it was a settled principle that natural persons could not escape from their personal liability under Section 138 of the NI Act.”
National Company Law Tribunal, Mumbai Bench: The Coram of H.V. Subba Rao, Judicial Member and Chandra Bhan Singh, Technical Member directed that
Securities Appellate Tribunal (SAT): Justice Tarun Agarwal quashed the order under challenge in the present appeal as Adjudicating Officer has no power