Corporate Insolvency: NCLAT Clarifies Scope of Moratorium & Assessment Proceedings under IBC.

The NCLAT clarified that under Section 14(1) of the IBC, assessment proceedings by the EPFO cannot continue during the moratorium. However, once a liquidation order is issued, Section 33(5) allows for the initiation or continuation of such proceedings. Claims based on assessments conducted during the moratorium are inadmissible in the Corporate Insolvency Resolution Process (CIRP). Additionally, claims filed after the Resolution Plan's approval by the Committee of Creditors are also inadmissible under Section 14(1). The appeals were dismissed as no errors were found in the Adjudicating Authority's orders. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X