Insolvency moratorium bars regulatory proceedings against the corporate debtor; interim relief must be sought before the NCLT.

During the insolvency moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, proceedings against the corporate debtor could not be continued or instituted, so the Commission would not entertain a petition seeking relief against termination of the power purchase agreement, a demand notice, or invocation of bank guarantees. The Commission stated that, because of this statutory bar, no proceeding could be maintained before it under Section 79(1)(f) of the Electricity Act, 2003. It also noted that the proper forum for interim directions in such circumstances is the National Company Law Tribunal under Section 60(5) of the Insolvency and Bankruptcy Code, 2016.

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Issues: Whether, during the moratorium declared under the Insolvency and Bankruptcy Code, 2016, the Commission could entertain a petition seeking reliefs against termination of the power purchase agreement, demand notice, and invocation of bank guarantees.

Analysis: The Petitioner's company was undergoing insolvency resolution and a moratorium had been imposed under Section 14 of the Insolvency and Bankruptcy Code, 2016. That provision prohibits the institution or continuation of proceedings against the corporate debtor during the moratorium period. In view of that statutory bar, the Commission held that no proceeding could be entertained before it under Section 79(1)(f) of the Electricity Act, 2003. The Commission also noted that, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, the proper forum for appropriate interim directions was the National Company Law Tribunal.

Conclusion: The petition could not be entertained before the Commission during the moratorium and the Petitioner was left to seek appropriate relief before the National Company Law Tribunal.

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