13-Nov-2022 06:30 PM
Sir mujhe ismein doubt hai ki it's telling in section 14 that once the moratorium period will start whatever the proceedings in the court will be kept on hold and no one can institute suit, continue it or can execute the judgement etc but the other way in the section 18 and 25 it's saying that the that resolution professional will represent in court or arbitration or any proceedings on the behalf of the corporate debtor so is there is some contradiction in this thing
Moratorium is not applicable to all the suits. As per provisions of section 14(1)(a) the moratorium period prohibits 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. It’s not prohibiting the suit that filed by corporate debtor or which is in the favour of the corporate debtor. Further, moratorium is also not applicable to criminal cases like cases under PML Act, 2002.Hon’ble Delhi High Court in the matter of Power Grid Corporation Of India Ltd Vs. Jyoti Structures Ltd.  ibclaw.in 12 HC held that in Jyoti Structures case for testing the applicability of Section 14 of Code one has to see the nature of proceedings and see if such proceedings are against the corporate debtor or is in its favour. In the light of the purpose or object behind the moratorium, Section 14 of the Code would not apply to the proceedings which are in the benefit of the corporate debtor. Hence, provisions of section 14 and section18 and 25 in IBC are not contradictory.
Answer given by Shubhamm Sir at 03-Dec-2022 05:32 PM