Moratorium under insolvency law and valid NCLT filing supported limited interim relief, with status quo maintained on properties.

Pendency of insolvency proceedings before the NCLT was treated as capable of attracting the statutory moratorium under Section 96 of the Insolvency and Bankruptcy Code, but the exact effect depended on whether the application was validly filed and refiled in compliance with NCLT procedure. The HC noted that the filing history and Rule 63 compliance could be confirmed only from the NCLT record, and that the consequence of the insolvency pendency had not been addressed in the impugned order. On that basis, it found a prima facie case for limited interim relief and directed the parties to maintain status quo over the subject properties pending further consideration.

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Issues: Whether the petitioners had made out a prima facie case for limited interim relief on the basis of the pendency or filing of insolvency proceedings before the NCLT and whether status quo deserved to be maintained till further consideration.

Analysis: The petitioners relied on the moratorium under Section 96 of the Insolvency and Bankruptcy Code, 2016, contending that the creditor's application before the NCLT had already triggered the statutory protection. The respondent-bank disputed this by asserting that the application was initially defective and that the relevant filing for Section 96 purposes could be determined only from the NCLT record. The Court noted that the exact nature of filing and refiling, including compliance with Rule 63 of the NCLT Rules, could be clarified only after a report from the NCLT. The Court further noted that the case status materials indicated eventual registration of the application and that the pendency of the insolvency proceedings had been brought to the notice of the DRT, yet the impugned order did not discuss the consequence of that pendency.

Conclusion: The petitioners were held to have made out a prima facie case for limited interim relief, and the parties were directed to maintain status quo with respect to the subject properties pending further consideration.

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