https://www.taxtmi.com/caselaws?id=461939 The NCLT Chandigarh held that Section 14 IBC moratorium applies to FEMA Section 16(3) penalty determination and recovery proceedings against corporate debtors. Following Innoventive Industries v ICICI Bank and Jagmeet Singh Sabharwal precedents, the tribunal concluded that FEMA proceedings are civil recovery matters, not criminal proceedings, thus falling within moratorium scope. Government authorities seeking tax recovery are treated as operational creditors without special status. However, proceedings may continue against individual directors/officers for pre-CIRP actions where personal liability exists. en-us Tue, 27 Aug 2019 00:00:00 +0530 Fri, 09 May 2025 15:53:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461939 The NCLT Chandigarh held that Section 14 IBC moratorium applies to FEMA Section 16(3) penalty determination and recovery proceedings against corporate debtors. Following Innoventive Industries v ICICI Bank and Jagmeet Singh Sabharwal precedents, the tribunal concluded that FEMA proceedings are civil recovery matters, not criminal proceedings, thus falling within moratorium scope. Government authorities seeking tax recovery are treated as operational creditors without special status. However, proceedings may continue against individual directors/officers for pre-CIRP actions where personal liability exists. Case-Laws IBC Tue, 27 Aug 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461939