Insolvency Code: Beneficial Proceedings Relating to Corporate Debtor outside the Scope of Moratorium

[Aayush Mitruka is a lawyer based in Delhi] The Delhi High Court’s ruling in the case of Power Grid Corporation of India Limited Jyoti Structures Limited (11 December 2017) assumes importance because it is one of the very few decisions interpreting section 14 of the Insolvency and Bankruptcy Code, 2016 (Code) that deals with moratorium. In a significant outcome, the Court travelled beyond the apparently plain statutory language to determine the true and correct meaning of the provision and its effect on ongoing legal proceedings pertaining to the corporate debtor. The sequence of events leading to the present case are as follows. Power Grid had approached the Delhi High Court under section 34 of the Arbitration and Conciliation Act, 1996 (Act) for setting aside an arbitral award passed in favour of Jyoti Structures. Interestingly, the award passed in favour of Jyoti Structures is in the nature of a pure money decree. However, during the pendency of these proceedings, an…

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