Moratorium protection bars contract termination during insolvency, and clerical errors in tribunal orders may be rectified.

A clerical misdescription in an earlier NCLT order, where the Resolution Professional was referred to as the Liquidator, was rectified under the Tribunal's correction power. The Tribunal also found that termination of a power purchase agreement during the moratorium period was contrary to the statutory insolvency protection, as the corporate insolvency resolution process had already been admitted and the moratorium was in force when notice was issued. The agreement was directed to be restored, while connected applications were left pending for further consideration.

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Issues: (i) Whether the typographical error in the earlier order could be rectified under the Tribunal's rectification power. (ii) Whether the termination of the power purchase agreement during the moratorium period was invalid and liable to be reversed.

Issue (i): Whether the typographical error in the earlier order could be rectified under the Tribunal's rectification power.

Analysis: The earlier order incorrectly referred to the Resolution Professional as the Liquidator. The correction was confined to substituting the correct description, and the Tribunal exercised its power to rectify the clerical mistake under the applicable NCLT Rules.

Conclusion: The typographical error was rectified in favour of the applicant.

Issue (ii): Whether the termination of the power purchase agreement during the moratorium period was invalid and liable to be reversed.

Analysis: The corporate insolvency resolution process had already been admitted and the moratorium was in force when the termination notice was issued. A termination of contractual rights during the subsistence of moratorium was treated as contrary to the statutory protection under the insolvency law.

Conclusion: The termination was held to be in violation of the moratorium and the respondent was directed to restore the agreement.

Final Conclusion: The application was allowed with directions restoring the contractual arrangement and correcting the earlier order, while other connected applications were kept pending for further consideration.

Ratio Decidendi: Any termination of a corporate debtor's contract during the moratorium period is ineffective if it contravenes the statutory bar protecting the estate during insolvency resolution.

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