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2019 (4) TMI 1724 - AT - Insolvency and BankruptcyScope of Moratorium Order - the Regulatory Authorities covered under the ‘Moratorium’ as provided under Section 14 of the Insolvency and Bankruptcy Code, 2016 or not - whether on failure to perform the duties, if any, penal order is passed for penalty imposed on the ‘Corporate Debtor’ or any recovery can be made in terms of Section 28A of the ‘SEBI Act, 1992’? - HELD THAT:- As per Section 14 (1) (a) of the ‘I&B Code’, the institution of suits or continuation of pending suits or proceedings against the ‘Corporate Debtor’ including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority is prohibited - Section 28A of the SEBI Act, 1992 including sub-Section (3) therein is in contravention of Section 14 of the ‘I&B Code’. Section 28A of the ‘SEBI Act, 1992’ being inconsistent with Section 14 of the ‘I&B Code’, we hold that Section 14 of the ‘I&B Code’ will prevail over Section 28A of the ‘SEBI Act, 1992’ and ‘Securities Exchange Board of India’ cannot recover any amount including the penalty from the ‘Corporate Debtor’. The ‘Bombay Stock Exchange’ for the same very reason cannot take any coercive steps against the ‘Corporate Debtor’ nor can threaten the ‘Corporate Debtor’ for suspension of trading of shares. In view of Section 18 of the ‘I&B Code’, the ‘Interim Resolution Professional’ while taking control and custody of any asset including the tangible and intangible assets, cannot sell the shares of the ‘Corporate Debtor’ during the period of ‘Moratorium’ except in accordance with the provisions of the ‘I&B Code’ and with the approval of the ‘Committee of Creditors’. Therefore, dealing with the shares of the ‘Corporate Debtor’ by the ‘Bombay Stock Exchange’ during the period of ‘Moratorium’ normally does not arise. The shares can be transferred only in the manner prescribed under the ‘I&B Code’ and following requirements framed under the ‘SEBI Act, 1992’ and the ‘Companies Act, 2013’. Appeal disposed off.
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