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        Case ID :
        IBC

        HC allowed the civil revision application and quashed the trial...

        Suit filed during IBC moratorium period quashed for suppressing material facts under Section 14

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                HC allowed the civil revision application and quashed the trial court's order dated 23.11.2023. The court held that respondent's suit filed on 21.02.2022 against applicant company was barred under moratorium provisions of Section 14 IBC, which remained effective from 30.08.2021 to 19.05.2023. The suit was filed during subsistence of moratorium while suppressing this material fact. HC ruled that plaint was liable for rejection under Order 7 Rule 11 read with Section 151 CPC, as IBC being special legislation with overriding effect prohibited initiation of proceedings during moratorium period. The trial court's refusal to reject the plaint was erroneous and contrary to settled legal position regarding moratorium's binding effect.
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