01-Dec-2022 09:15 PM
Sir as we know ki during cirp co k against agr koi pending suit h toh woh continue nhi hoga but agr yh suit co k koi disputed asset ko leke h toh continue hoga kya?
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. Stay of proceedings against an award in favour of the corporate debtor would rather be stalking the debtor’s effort to recover its money and hence would not fall in the embargo of Section 14(1)(a) of the Code. Hence, we can say that the suit will continue if it is in the benefit of the corporate debtor.
Answer given by Shubhamm Sir at 03-Dec-2022 05:37 PM