Nagpur: In an important judgment reinforcing the supremacy of the Insolvency and Bankruptcy Code (IBC), the Nagpur bench of Bombay High Court recently ruled that consumer complaints involving the recovery of property cannot proceed against companies under moratorium during the Corporate Insolvency Resolution Process (CIRP). The court set aside orders passed by the District Consumer Dispute Redressal Commission, Akola, including bailable warrants issued against the CEO and owner of a Nagpur-based finance firm.Delivering the verdict, Justice MM Nerlikar held that once insolvency proceedings begin, all recovery actions must stop. “Once the moratorium is declared or applied or the resolution plan is approved, proceedings which are in the…
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