TaxTMI 
TaxTMI 
2023 (6) TMI 793
X X X X Extracts X X X X
X X X X Extracts X X X X
....4 of the Insolvency and Bankruptcy Code, 2016 (for short 'IB Code'). The facts are not in dispute. 3. The short facts necessary are as under:- A suit came to be preferred by the respondent herein on 29.07.2016 which came to be registered as O.S. No. 5512/2016 and which also came to be decreed whereby, the appellant was made liable to pay certain sums along with interest. It is also not in dispute that another suit came to be preferred by the appellant herein which came to be registered as O.S. No. 25647/2016 before the Civil Court, Bengaluru seeking for recovery of certain sums by the appellant from the respondent herein. It is not in dispute that the said suit came to be rejected. Aggrieved, the appellant is before this Co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bmission of claims under Section 15; and (c) appoint an interim resolution professional in the manner as laid down in Section 16. (2) The public announcement referred to in clause (b) of sub-section (1) shall be made immediately after the appointment of the interim resolution professional 14. Moratorium.-(1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely- (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng moratorium period. (2-A) Where the interim resolution professional or resolution professional, as the case may be, considers the supply of goods or services critical to protect and preserve the value of the corporate debtor and manage the operations of such corporate debtor as a going concern, then the supply of such goods or services shall not be terminated, suspended or interrupted during the period of moratorium, except where such corporate debtor has not paid dues arising from such supply during the moratorium period or in such circumstances as may be specified. (3) The provisions of sub-section (1) shall not apply to- (a) such transactions, agreements or other arrangements as may be notified by the Central....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Code is deemed to have taken effect. The proviso stipulates that if the Adjudicating Authority approves the Resolution Plan under sub-section (1) of Section 31 of the IB Code or passes an order for liquidation of corporate debtor under Section 33 of the IB Code, the moratorium shall cease to have effect. Section 33 of the Insolvency and Bankruptcy Code, 2016, reads as under:- "33. Initiation of liquidation.-(1) Where the Adjudicating Authority,- (a) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the case may be, does not ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Authority determines that the corporate debtor has contravened the provisions of the resolution plan, it shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). (5) Subject to section 52, when a liquidation order has been passed, no suit or other legal proceeding shall be instituted by or against the corporate debtor: Provided that a suit or other legal proceeding may be instituted by the liquidator, on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority. [Emphasis added] (6) The provisions of sub-section (5) shall not apply to legal proceedings in relation to such transactions as may be notified by the Central G....