Whether Pending Proceeding before High Court can be peruse after declaration of moratorium ibc
Whether
Pending Proceeding before High Court can be peruse after declaration of
moratorium ibc
Short Summary:
In this flash tabloid, the writer initiates by speak of
the provisions of Insolvency & Bankruptcy Code, 2016 (hereafter referred as
“IBC”) in relation to power of IBC u/s 14(1)(a) of IBC and Section 238 of IBC,
2016.
The main drive of the broadsheet, on the other hand, is
upon the “Whether Pending Proceeding before
Hon’ble High Court can be peruse after declaration of Moratorium in IBC, 2016”
This is article no. 291 of the series of editorials written
by the author on corporate laws
{Including Companies
Act, 2013, SEBI, RBI Regulations, IBC, LLP Act, 2008 etc.}.
In this editorial author discuss the provisions under Section
14(1)(a) and 238 of the IBC and landmark judgement
delivered by NCLAT, in case Steam Line Industries Limited Vs. Tecpro Systems
Ltd.
Case element:
Case Name
|
Steamline Industries Ltd Vs. Tecpro Systems Ltd
|
Operational Creditor
|
Edelweiss Asset
Reconstruction Company Limited
|
Corporate Debtor
|
Tecpro Systems Ltd
|
Bench Name
|
The
National Company Law Appellate
Tribunal (NCLAT)
|
Link:
|
|
Heard & Pronounced on Order
|
04th December, 2017
|
A. Factual Background:
I.
CIRP has already
been initiated against the Corporate Debtor u/s 7 of IBC, 2016.
II.
Moratorium ordered
U/s 13 read with section 14 of the I&B Code.
III.
The civil suits
against the CD and another pending before the Hon’ble High Court of Delhi can’t
be proceed.
IV.
Appellant:
it’s filed an application before the NCLT, Principle Bench, New Delhi, to
permit the Appellant to pursue the proceedings pending before the Hon’ble High
Court of Delhi in Civil Suit.
V.
NCLT: The NCLT rejected
the application preferred by Appellant with cost u/s 14(1)(a).
Section 14(1)(a) : “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 or other
authority;”
VI.
Appellant: Its submit that the suit in question has
been filed under “Commercial Court Act” therefore, the provisions of the said
Act will prevail over the “I&B Code”.
Findings of the NCLT Bench:
Hon’ble NCLAT states that, submission of
Appellate can’t be accepted in view of section 238 of the ‘I&B Code” which
read as follow:
as per Section 238 [1]The provisions of this Code shall have
effect, notwithstanding anything inconsistent therewith contained in any other
law for the time being in force or any instrument having effect by virtue of
any such law.
Therefore, No
relief can be granted to the Appellant.
The
detailed discussion on Section 238 has been decided by Hon’ble NCLAT in the
case:
Case Name
|
ICICI
Bank Ltd Vs. Innoventive Industries Ltd
|
Bench Name
|
The National Company Law Appellate Tribunal (NCLAT)
|
Link:
|
http://ibbi.gov.in/15thMay2017_in_the_matter_of_Innoventive_Industries_Ltd_Company_Appeal_AT_InsolvencyNo1and2of2017.pdf
|
Heard & Pronounced on Order
|
15th May, 2017
|
Order Passed by
|
Justice S. J. Mukhopadhaya
|
Section
|
7 Rule 4
|
Type of Creditor
|
Financial Creditor
|
The NCLAT held that section 238 of the Code is a
non-obstante clause which overrides the all other Acts, and thus the provisions
of the Code shall prevail over the provisions of the MRU Act.
Detailed analysis of above case can
be read on the following link:
(Author
– CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice
from Delhi and can be contacted at csdiveshgoyal@gmail.com).
Disclaimer: The entire
contents of this document have been prepared on the basis of relevant
provisions and as per the information existing at the time of the preparation.
Although care has been taken to ensure the accuracy, completeness and
reliability of the information provided, I assume no responsibility therefore.
Users of this information are expected to refer to the relevant existing
provisions of applicable Laws. The user of the information agrees that the
information is not a professional advice and is subject to change without
notice. I assume no responsibility for the consequences of use of such
information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT,
SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION
WITH THE USE OF THE INFORMATION.
Great share!
ReplyDeleteI love this bucket list and you know you're right. sand blasting machine manufacturer. We all have the same amount of hours in a day so put them to good use. We all have to start somewhere and your plan is perfect. I understand the way of the attractive to the customer with the products sand blasting machine.
Sand blasting machines like shot blasting machine, sand blasting machine, and grit blasting machines, Wood Working Machinery Dust Extraction unit, Abrasive Blasting Media and various others. Keep it works and share with us your latest information. My time will come but I know I'm on the right path.
They are similar to small communities that you own - check them out if you haven't already. It's all got a lot better than before!t. Value that list of thousands but I'll get there.
Thanks for sharing. Have a nice week ahead.
Visit at : www.gritblast.co.in
Also check
portable shot blasting machine
portable sand blasting machine
sand blasting cabinet
grit blasting cabinet
shot blasting cabinet
Regards,
Ankit Manawat.