Interactive flat panels meeting automatic data processing conditions are distinguished from monitors, while later classification clarifications apply ...
Statutory transfer formalities invalidated alleged share and property transfers, while retrospective record manipulation constituted oppression and mi...
Provisional attachment of laundered funds and equivalent-value property sustained, with statutory protection limited to pension, gratuity and providen...
The NCLAT dismissed the appeal and upheld the NCLT order, ruling that u/s 14 of the IBC, 2016, a security deposit lying with a third party cannot be adjusted against pre-CIRP dues during the moratorium period. The IBC prohibits any action to recover or enforce security interests created by the corporate debtor before CIRP admission. The corporate debtor must continue as a going concern, with essential supplies permitted subject to payment of current dues arising during moratorium. Recovery of past dues is prohibited, and creditors must file claims following the specified procedure. Adjusting the security deposit against pre-CIRP dues would contravene the IBC's provisions and the Supreme Court's guidance in upholding the IBC's primacy.
The NCLAT dismissed the appeal and upheld the NCLT order, ruling that u/s 14 of the IBC, 2016, a security deposit lying with a third party cannot be adjusted against pre-CIRP dues during the moratorium period. The IBC prohibits any action to recover or enforce security interests created by the corporate debtor before CIRP admission. The corporate debtor must continue as a going concern, with essential supplies permitted subject to payment of current dues arising during moratorium. Recovery of past dues is prohibited, and creditors must file claims following the specified procedure. Adjusting the security deposit against pre-CIRP dues would contravene the IBC's provisions and the Supreme Court's guidance in upholding the IBC's primacy.
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