SC Holds that Moratorium Period Can Be Excluded in Computing Limitation Period in Suit /Application by Corporate Debtor

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Jun 30, 2022

SC Holds that Moratorium Period Can Be Excluded in Computing Limitation Period in Suit /Application by Corporate Debtor

The SC in the case of New Delhi Municipal Council v. Minosha India Ltd.^[1], held that a Corporate Debtor can take advantage of the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’), even though such a moratorium is put in place due to the Corporate Debtor’s own application for initiation of the corporate insolvency resolution process under Section 10 of the IBC. The moratorium period applies to all proceedings, including application for appointment of an arbitrator, in relation to a Corporate Debtor, including proceedings contemplated by the Corporate Debtor itself.

[1] NDMC v. Minosha India Ltd., 2022 SCC OnLine SC 546.

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