9911796707
TMI Blog2021 (12) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... kruptcy Code, 2016 ("I&B Code" for short) has been filed against the order dated 08.03.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad, rejecting I.A. 463/AHM/2019 filed by the Appellant in C.P. (IB) No. 175/AHM/2018. The Adjudicating Authority passed an order dated 15.01.2019 in C.P. (IB) No. 175/9/NCLT/AHM/2018 initiating Corporate Insolvency Resolution Process (CIRP) against 'Swastik Ceracon Limited' (Corporate Debtor). The Central GST Range-I, Mehsana, attached finished goods lying in the factory premises of Unit-1 of 'Swastik Ceracon Limited' on 31.01.2018. The Resolution Professional was appointed and Adjudicating Authority declared 'Moratorium' by order dated 15.01.2019. The Resol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Section 14 of the 'I&B Code' deals with 'Moratorium'. Sub-section (1) of Section 14 is as follows:- "14. Moratorium. - (1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely: - (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing off by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited and Ors.- (2020) 14 SCC 198". 7. In the above case, Financial Creditor has filed an Application under Section 7 of the 'I&B Code' which was admitted on 04.06.2019 and Moratorium was declared. During the pendency of Moratorium in WP (C) No. 7939 of 2011, interim orders were passed by the Orissa High Court on 14.08.2019 and 05.09.2019. Appeal was filed in the Hon'ble Supreme Court challenging the interim order passed by the Orissa High Court on the ground that since CIRP proceedings has commenced against Respondent No.4, proceedings before the High Court ought to have been stayed. The Hon'ble Supreme Court after referring to Sections 14, 238 & 231 of the 'I&B Code', in Paragraphs 11 and 12 held as follows:- "11. In view of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
