Landmark judgments under section 14 of Insolvency and Bankruptcy Code of India:

Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) deals with the moratorium that is imposed on the corporate debtor once an insolvency resolution process (CIRP) is initiated against it. The moratorium is intended to provide a breathing space to the corporate debtor to allow it to reorganize its affairs and to facilitate a resolution of its debts.

The moratorium under section 14 of the IBC is a wide-ranging measure that covers a variety of activities. It prohibits the following:

The institution of any new suits or proceedings against the corporate debtor.

The continuation of any pending suits or proceedings against the corporate debtor.

The transfer, encumbrance, alienation, or disposal of any assets of the corporate debtor.

The enforcement of any security interest created by the corporate debtor.

The recovery of any property by an owner or lessor from the corporate debtor.

The moratorium under section 14 of the IBC is subject to a few exceptions. For example, the moratorium does not apply to:

Suits or proceedings that are filed by or against the corporate debtor in relation to the following:

The enforcement of a security interest created by the corporate debtor in respect of its property.

The recovery of any property by an owner or lessor from the corporate debtor in accordance with the terms of a lease.

The supply of essential goods or services to the corporate debtor.

Suits or proceedings that are filed by or against the corporate debtor in relation to the following:

Any matter arising out of or in connection with the CIRP.

Any matter arising out of or in connection with the resolution plan.

The moratorium under section 14 of the IBC has been upheld by the courts in a number of landmark judgments. In the case of Swiss Ribbons Pvt. Ltd. v. Union of India, the Supreme Court held that the moratorium is a necessary feature of the IBC and that it is essential to protect the interests of all stakeholders in the insolvency resolution process.

In the case of Innoventive Industries Ltd. v. ICICI Bank, the Supreme Court held that the moratorium applies to all creditors, including operational creditors. The Court also held that the moratorium is not a bar on the corporate debtor from continuing to carry on its business.

In the case of Essar Steel Ltd. v. ArcelorMittal India Pvt. Ltd., the Supreme Court held that the moratorium can be extended by the National Company Law Tribunal (NCLT) even if the resolution plan has not been approved. The Court also held that the moratorium can be lifted in certain circumstances, such as where the corporate debtor is unable to pay its debts or where it is engaging in fraudulent or dishonest conduct.

The landmark judgments that have been pronounced by the courts under section 14 of the IBC have helped to clarify the law and have provided much-needed guidance to the stakeholders in the insolvency and bankruptcy process. The moratorium under section 14 of the IBC is an important tool that helps to protect the interests of all stakeholders in the insolvency resolution process and to facilitate a resolution of the corporate debtor's debts.

Here are some of the key takeaways from the landmark judgments under section 14 of the IBC:

1. The moratorium is a necessary feature of the IBC and is essential to protect the interests of all stakeholders in the insolvency resolution process.
2. The moratorium applies to all creditors, including operational creditors.
3. The moratorium is not a bar on the corporate debtor from continuing to carry on its business.
4. The moratorium can be extended by the NCLT even if the resolution plan has not been approved.
5. The moratorium can be lifted in certain circumstances, such as where the corporate debtor is unable to pay its debts or where it is engaging in fraudulent or dishonest conduct.

The landmark judgments under section 14 of the IBC have further strengthened the IBC and have made it a more effective tool for resolving insolvency and bankruptcy in India.