The Supreme Court on Monday (July 27) observed that an operation of a moratorium under the Insolvency & Bankruptcy Code, 2016, against a residential project development company would not be a ground to reject the consumer complaints against its promoters/directors.
“In the present case, Respondent No.1 alone is the corporate debtor against whom the CIRP has been initiated. No independent moratorium or independent protection operates in favour of Respondent Nos. 2 to 7. In the absence of any legal bar against continuation of proceedings qua the said respondents, the NCDRC was not justified in rejecting appellants’ prayer to proceed with the complaint against the rest of the respondents.”, observed a bench of Justice Vikram Nath and…