Moratorium and judicial comity justified deferring appeals during CIRP where parallel Supreme Court issues were already pending.

A pending corporate insolvency resolution process and the statutory moratorium under Section 14 of the Insolvency and Bankruptcy Code justified deferring further hearing of appeals against the corporate debtor. The Tribunal noted that parallel Supreme Court proceedings raised overlapping issues concerning the approved resolution plan and CIRP cost determinations, and that simultaneous continuation could create conflicting outcomes. On considerations of judicial propriety, comity and prudence, it deferred the main appeals for 12 weeks while the parties pursued remedies before the Supreme Court.

---

---

Issues: Whether the hearing and continuation of the pending appeals against the corporate debtor should be deferred during the subsistence of the moratorium and in view of the pending proceedings before the Supreme Court.

Analysis: The Tribunal noted that the corporate debtor was under corporate insolvency resolution process and that a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 was in force. It also noted the parallel Supreme Court proceedings involving overlapping questions concerning the approved resolution plan and the challenge to CIRP cost determinations. In view of the commonality of substantive issues, the need to avoid conflicting outcomes, and considerations of judicial propriety, comity and prudence, the Tribunal held that continuation of the main appeals against the corporate debtor should not proceed at that stage.

Conclusion: The prayer for deferment was allowed and the proceedings in the main appeals were deferred for 12 weeks.

Final Conclusion: The Tribunal granted temporary suspension of further hearing in the connected appeals against the corporate debtor, leaving the parties to pursue their remedies before the Supreme Court.

Ratio Decidendi: Where a corporate debtor is undergoing CIRP and parallel higher-court proceedings involve substantially identical issues touching the same resolution process, continuation of the pending appeals may be deferred on the basis of the statutory moratorium and judicial propriety.

---