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TMI Blog2023 (6) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... t if the Adjudicating Authority approves the Resolution Plan under sub-section (1) of Section 31 of the IB Code or passes an order for liquidation of corporate debtor under Section 33 of the IB Code, the moratorium shall cease to have effect. A conjoint reading of the proviso to Section 14 of the IB Code and the provisions of Section 33 of the IB Code, would show that where the resolution plan is rejected or not accepted, the Tribunal is required to pass an order requiring corporate debtor be liquidated in the manner laid down in the chapter and carry out such other actions as mandated therein. From a reading of the above, it is apparent that the prohibition under Section 14 of the IB Code prohibiting the initiation of proceedings or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein which came to be registered as O.S. No. 25647/2016 before the Civil Court, Bengaluru seeking for recovery of certain sums by the appellant from the respondent herein. It is not in dispute that the said suit came to be rejected. Aggrieved, the appellant is before this Court mounting a challenge to both the decrees i.e. the decree in the suit by the respondent decreeing certain amounts as due from the appellant to the respondent and the decree rejecting the suit for recovery of certain sums by the appellant from the respondent. Aggrieved, this appeal is preferred challenging both the decrees which the learned senior counsel contend is impermissible by a single appeal. 4. It is not in dispute that in 2020 the State Bank of India, a Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... biting all of the following, namely- (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (d) the recovery of any property by an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratorium period or in such circumstances as may be specified. (3) The provisions of sub-section (1) shall not apply to- (a) such transactions, agreements or other arrangements as may be notified by the Central Government in consultation with any financial sector regulator or any other authority; (b) a surety in a contract of guarantee to a corporate debtor. (4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process: Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan under sub-section (6) of section 30; or (b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, it shall- (i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter; (ii) issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered. (2) Where the resolution professio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d] (6) The provisions of sub-section (5) shall not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. (7) The order for liquidation under this section shall be deemed to be a notice of discharge to the officers, employees and workmen of the corporate debtor, except when the business of the corporate debtor is continued during the liquidation process by the liquidator. 7. A conjoint reading of the proviso to Section 14 of the IB Code and the provisions of Section 33 of the IB Code, would show that where the resolution plan is rejected or not accepted, the Tribunal is required to pass an order requiring corporate debtor b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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