The Supreme Court has held that the moratorium imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC) during the Corporate Insolvency Resolution Process (CIRP) operates only against the corporate debtor and cannot extend to its subsidiary companies, managers, directors, personal guarantors or other respondents.
A Bench of Justices Vikram Nath and Sandeep Mehta set aside the National Consumer Disputes Redressal Commission’s (NCDRC) January 20, 2025 order, which had rejected an application filed by Tejas S Shah, Amisha T Shah and others seeking continuation of consumer proceedings against the remaining respondents, including Mantri Developers Pvt. Ltd.
The consumer complaint was filed in connection with residential…