Right to claim over property occupied by the Corporate Debtor - ...

Section 14 Moratorium Doesn't Protect Corporate Debtors' Unlawful Property Possession Under Insolvency and Bankruptcy Code.

October 6, 2022

Case Laws     Insolvency and Bankruptcy     Tri

Right to claim over property occupied by the Corporate Debtor - Even though the object behind imposing moratorium under section 14 of IB Code, is to prevent depletion of a corporate debtor's assets, in our considered view the same cannot be extended to the properties which are not in rightful possession of the corporate debtor as any such extension to the properties which are not in the rightful possession of the corporate debtor results in unjust enrichment by the corporate debtor, under the guise of 'maximisation' at the cost of the lawful owner of the property. - Tri

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