Moratorium under insolvency law bars continuation of proceedings against the corporate debtor until the moratorium ends.

A moratorium under the Insolvency and Bankruptcy Code, 2016 prevents the institution or continuation of proceedings against the corporate debtor during the corporate insolvency resolution process. Because insolvency proceedings were admitted and the moratorium subsisted, the pending writ petition could not be pursued at that stage and was disposed of as not entertainable. The legal effect is that further adjudication must be deferred while the moratorium remains in force.

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Issues: Whether the writ petition could be entertained in view of the moratorium declared under the Insolvency and Bankruptcy Code, 2016.

Analysis: A moratorium had been declared in the corporate insolvency resolution process against the petitioner-company. During the moratorium, the institution or continuation of proceedings against the corporate debtor is barred. In view of the admitted insolvency proceedings and the subsisting moratorium, the pending writ petition could not be pursued at that stage.

Conclusion: The writ petition was not entertainable during the moratorium and stood disposed of.

Ratio Decidendi: Where a moratorium under the Insolvency and Bankruptcy Code, 2016 is in force, pending proceedings against the corporate debtor cannot be continued and the court must defer further adjudication.

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