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2017 (9) TMI 1963 - HC - Insolvency and BankruptcySuit for recovery of khas possession and for mesne profit - continuation of proceedings during moratorium period - Prayer for stay of all further proceedings on the ground that an insolvency proceeding has started under Section 10 of the Insolvency and Bankruptcy Code, 2016 - whether the present suit should be allowed to continue or not? - HELD THAT:- If an adjudicating authority is satisfied that the subject matter of the case is such that the Corporate Insolvency Resolution Process cannot be completed within 180 days it may, by order, extend the duration of such process beyond 180 days of such further period as it thinks fit, but not exceeding 90 days. The proviso to sub-section (3) further says that any extension of the period of Corporate Insolvency Resolution Process under the said execution shall not be granted more than once. Therefore, on a conjoint reading of the sub Sections under Section 12 it appears that the resolution process has to be completed within 180 days and further 90 days of extension (once only). If the provisions of the Code are compared with its object, it gives a logical conclusion that the Courts are prohibited from proceeding with the suits and proceedings which has direct nexus with the provisions of Section 14 of the said Code. Admittedly, the defendant is a corporate debtor. Admittedly, in a proceeding under Section 10 a moratorium has been declared, an Insolvency Resolution Professional has been appointed on and from the date of the order under Section 10 of the said code, i.e., 01.05.2017. We are now in September 2017. Therefore, it is expected that within the timeframe mentioned in Section 12 the Insolvency Proceeding will be completed and it is prudent to hold that the trial of the suit will be stayed for the present for a period of four months from date with liberty to the plaintiff to bring it to the notice of the Court with regard to further development in the Insolvency Proceeding. The proceedings of the suit is stayed only for a period of four months for the present with liberty to the parties to pray for extension if situation so demands - application disposed off.
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