The Supreme Court on Monday held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, operates only against the corporate debtor.
It ruled that courts or adjudicating authorities cannot enlarge its scope to cover directors, promoters, subsidiary companies, personal guarantors or any other persons unless the statute expressly provides so.
The court observed that the scope of the moratorium is statutory and must remain confined to what Section 14 contemplates.
A bench of Justices Vikram Nath and Sandeep Mehta allowed appeals filed by homebuyers of the Mantri Manyata Energia project and set aside the NCDRC’s order of 20 January 2025 refusing to proceed with the consumer complaint against respondents other than…