Supreme Court: While deciding appeals concerning the effect of a moratorium under Section 14, Insolvency and Bankruptcy Code, 2016 (IBC) on pending consumer proceedings, a Division Bench of Vikram Nath* and Sandeep Mehta, JJ., held that the statutory moratorium operates only against the corporate debtor and cannot be extended to promoters, directors, landowners or other respondents unless expressly provided by the statute.
The Court observed that the protective sweep of the moratorium must remain within the 4 walls of the IBC and cannot be enlarged in a manner that stultifies remedies available under the Consumer Protection Act, 2019. Holding that the National Consumer Disputes Redressal Commission (NCDRC) had erroneously declined to…