Personal insolvency moratorium ends on expiry or repayment plan order, reviving execution and creditor remedies.

Section 101 of the Insolvency and Bankruptcy Code, 2016 was construed strictly to mean that the personal insolvency moratorium is time-bound and ends on the earlier of 180 days from admission of the application or an order on the repayment plan under Section 114. The provision does not permit extension beyond those contingencies. Once that moratorium ceases, the statutory bar is lifted and ordinary creditor remedies revive, including execution proceedings and attachment and sale of the judgment debtors' properties. As the prescribed period had expired and no repayment plan order had been passed, execution was held maintainable and the properties, other than the excluded property, were directed to be attached and sold.

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Issues: Whether the moratorium under the personal insolvency resolution process had ceased so as to permit continuation of execution proceedings and attachment and sale of the judgment debtors' properties.

Analysis: Section 101 of the Insolvency and Bankruptcy Code, 2016 was construed strictly on its plain language. The moratorium is time-bound and ceases on the earlier of two events, namely expiry of 180 days from admission of the application or the date of an order on the repayment plan under Section 114 of the Insolvency and Bankruptcy Code, 2016. The provision does not contemplate extension of the moratorium beyond those contingencies. Once the moratorium ends, the statutory bar is lifted and ordinary creditor remedies revive. As the prescribed period had expired and no repayment plan order had been passed, there was no legal impediment to proceeding with the application.

Conclusion: The moratorium had ceased and the execution proceedings were maintainable. The properties, except the excluded property, were directed to be attached and sold, and the application was allowed.

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