New Delhi, Jul 30 (KNN) The Supreme Court has clarified that the moratorium under the Insolvency and Bankruptcy Code (IBC), 2016 applies only to the corporate debtor and does not extend to promoters, directors, or other associated parties in consumer disputes.
The ruling came while hearing appeals against an order of the National Consumer Disputes Redressal Commission (NCDRC), which had adjourned a consumer complaint indefinitely due to insolvency proceedings against a developer company.
Background of the Case
The case involved homebuyers in the ‘Mantri Manyata Energia’ housing project, who had filed a complaint alleging delay in possession, deficiency in service, and unfair trade practices. The complaint named the…