SELECTIVE LITIGATION: THE TRUE PURPOSE OF I.B.C. MORATORIUM
Since its entry in the field of insolvency resolution, moratorium has been a hot topic for discussion. The essential requirement is to know and be able to ascertain the right time within which the fiscal health of the concern could be decided and the optimal outcome for all could be achieved.
The paper briefly discusses the considerations that have been there since 1909, when the first Insolvency Act in India came into force. An understanding of how things stood and how they are today is indispensable for scrutiny of all the constructs. This discussion has been further augmented by the English practice of moratorium stays.
This paper at its core enquires into the nature of Section 14 of the Insolvency and Bankruptcy Code, 2016 in the light of recent decisions of the Supreme Court, various High Courts, and the National Company Law Tribunal, owing to the recent decisions of the N.C.L.T., High Courts and Supreme Court. This papers attempts to find the balance between the overriding interpretation of I.B.C. moratorium and a more moderated consideration of other references, such as the Sick Industrial Companies (Special Provisions) Act, 1985 and Banking Regulation Act, 1949. This question is more about dispute resolution than about the litigation.