2017 (10) TMI 856

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....the application preferred by Appellant under section 7 of the Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as I&B Code), passed order of moratorium, relevant portion of which reads as follows: - "(c) We hereby declared the following Moratorium by prohibiting the following actions: - i) The institution of suits or continuation of pending suits or proceedings except before the Hon'ble High Court (s) and Hon'ble Supreme Court of India, against the Corporate Debtor including execution of any judgement, decree or order in any court of law, Tribunal, arbitration panel or other authority; ii) Transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right ....

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....of any judgement or decree, including the proceeding, if any, pending before the Hon'ble High Courts and Hon'ble Supreme Court of India against a 'corporate debtor'. 3. Notice was issued to the Respondent limited to the aforesaid question. But in spite of service of notice, none appeared on behalf of the Respondent. 4. We have heard Ld. Counsel for the Appellant and perused the provisions of I&B Code. 5. Section 14 relate to 'Moratorium' which the Adjudicating Authority is required to declare at the time of admission of the application for 'corporate insolvency resolution process', which reads as follows:- "14. Moratorium - (1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adju....

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....thority approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be." 6. From clause (a) of sub-Section (1) of Section 14, it is clear that institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order by any court of law, tribunal, arbitration panel or other authority come within the purview of 'moratorium. The said provision specifically do not exclude any Court, including the Hon'ble High Courts or Hon'ble Supreme Court of India. 7. There is no provision t....