The National Company Law Tribunal (NCLT), Kochi Bench, comprising of Justice T Krishna Valli (Retd.) (Judicial Member) and Shri. Shyam Babu Gautam (Technical Member) dismissed a stay application and has held that the moratorium under sections 96 and 101 of the Insolvency and Bankruptcy Code (IBC) cannot be meant to prohibit the right to action under sections 7, 9 or 10 of IBC as it lies against a company or body corporate and not against an individual.
The Bench has further observed that the word in relation to debt should be read in harmony with other parts of IBC and due importance should be given to the purpose and terms of a contract of guarantee and loan agreements.
Background Facts
Furnace Fabrica (Corporate Debtor/Applicant) defau…
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