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2022 (12) TMI 618 - HC - Insolvency and BankruptcyCIRP - moratorium is in force - Petitioner (Corporate Debtor) receiving the show cause notice alleging various breaches of the Fuel Supply Agreement (FSA) - SCN for Cancellation of agreement and forfeiture of security - Various bank guarantees for a total sum of approximately Rs.25 crores were furnished in terms of the FSA. However, for various reasons which are not relevant for the present purposes, there was a delay in the formal commissioning of the plant. HELD THAT:- The above order is in two parts - One is the appointment of the interim resolution professional and the other is the application of moratorium under Section 14 of the IBC. The NCLAT order extracted above primarily directs the RP not to take any steps, but the moratorium itself has not been stayed by the NCLAT. Therefore, the said order only concerns the first part of the NCLT decision extracted above. In view thereof, the moratorium would continue to apply even qua the forfeiture of the security deposit. Accordingly, it is directed that invocation of the bank guarantees shall not be given effect to by the banks till 4th January, 2023. If an application before the NCLT is filed by the Petitioner by the said date i.e., 4th January, 2023, the protection granted qua encashment of the bank guarantees shall continue till the date of first listing before the NCLAT.
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