Moratorium protection under insolvency law did not bar termination where mine vesting and lease were incomplete.

Termination of a coal mine development and production agreement during moratorium was not treated as barred by section 14(1)(d) of the Insolvency and Bankruptcy Code, 2016, because vesting of the mine had not been completed and no mining lease had been issued by the State Government under the governing framework. In the absence of completed vesting and lease, the corporate debtor could not establish that the mines were in its occupation or possession for section 14(1)(d) purposes. The show cause notice had also been issued before commencement of the corporate insolvency resolution process, so the later termination was not a prohibited recovery of property during moratorium.

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Issues: Whether the termination of the coal mine development and production agreement and vesting order during the moratorium was hit by section 14(1)(d) of the Insolvency and Bankruptcy Code, 2016.

Analysis: The vesting of the coal mine was not complete because no mining lease had been issued by the State Government in terms of the agreement and the relevant statutory framework. In the absence of a completed vesting and lease, the corporate debtor could not claim that the mines were in its occupation or possession for the purpose of section 14(1)(d). The show cause notice had also been issued before commencement of the corporate insolvency resolution process, and the later termination could not, on those facts, be treated as a prohibited recovery of property during moratorium.

Conclusion: The termination was not in violation of section 14(1)(d) of the Insolvency and Bankruptcy Code, 2016, and the challenge failed.

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