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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.
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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