Sonam Mhatre, Amit Mishra
Under Section 14 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), once a company enters Corporate Insolvency Resolution Process (“CIRP”), a moratorium is declared to protect its assets and maintain it as a going concern. However, in many redevelopment cases, defaulting developers misuse this protection. The moratorium is meant to protect the company’s existing assets not to revive terminated contracts or hinder the rights of societies and landowners.
This article provides an overview of a judgment passed by the Supreme Court of India in the matter of AA Estates Private Limited vs. Kher Nagar Sukhsadan Co-Operative Housing Society Ltd. & Ors. wherein a Division Bench of the apex court comprising of…