https://www.taxtmi.com/caselaws?id=374089 During corporate insolvency resolution, Section 14 moratorium bars proceedings against the corporate debtor, so shareholders cannot institute a suit to impeach a foreign decree and thereby bypass the statutory restraint. The Court noted that any challenge affecting the corporate debtor's rights must be taken by the resolution professional acting for the debtor within the insolvency framework. It also held that Section 25(2)(b) requires the resolution professional to represent the corporate debtor in judicial proceedings for its benefit, with recourse lying before the NCLT under Section 60(5) where appropriate. The proposed suit was not a true derivative action and could not be maintained by the shareholders. en-us Tue, 04 Dec 2018 00:00:00 +0530 Fri, 25 Jan 2019 09:13:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=374089 During corporate insolvency resolution, Section 14 moratorium bars proceedings against the corporate debtor, so shareholders cannot institute a suit to impeach a foreign decree and thereby bypass the statutory restraint. The Court noted that any challenge affecting the corporate debtor's rights must be taken by the resolution professional acting for the debtor within the insolvency framework. It also held that Section 25(2)(b) requires the resolution professional to represent the corporate debtor in judicial proceedings for its benefit, with recourse lying before the NCLT under Section 60(5) where appropriate. The proposed suit was not a true derivative action and could not be maintained by the shareholders. Case-Laws Companies Law Tue, 04 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=374089