Section 10A suspension does not bar a Section 7 insolvency application when the relevant default predates 25 March 2020.

Section 10A of the Insolvency and Bankruptcy Code does not bar a Section 7 application where the default relied upon occurred before 25 March 2020 or where the actionable default falls outside the suspension period. The date of default recorded in the application was 27 December 2019, and the later invocation notices were not treated as the final default for Section 10A purposes; the final notice was dated 11 June 2022, outside the protected window. The Section 7 application was therefore maintainable and the admission order was upheld.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was barred by Section 10A in view of the dates of default and the invocation notices.

Analysis: Section 10A suspends initiation of corporate insolvency resolution process for defaults arising on or after 25 March 2020, but it does not apply where the relevant default is before that date or where the material default relied upon is subsequent to the suspension period. The date of default recorded in the Section 7 application was 27 December 2019. The later notices relied upon by the appellant were not treated as the final invocation for the purpose of attracting the statutory bar, and the final notice was found to be dated 11 June 2022, which was outside the Section 10A window. The decision relied upon by the respondent was applied to hold that an application based on a post-Section 10A default remains maintainable.

Conclusion: The application under Section 7 was not hit by Section 10A and was rightly admitted.

Final Conclusion: The appeal failed on the sole issue urged and the admission order under the insolvency remained undisturbed.

Ratio Decidendi: Section 10A does not bar a Section 7 application where the default relied upon is before 25 March 2020 or where the actionable default falls outside the suspended period.

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