Topic
The Delhi High Court ruled that the 2026 amendment to Section 96 of the IBC operates retrospectively, extinguishing the interim-moratorium bar for personal guarantors. Consequently, suits against guarantors can proceed despite a pending moratorium. This decision broadens creditors' enforcement options in ongoing insolvency proceedings.
The Bombay High Court ruled that the interim moratorium under Section 96 of the IBC applies only to corporate debtors and does not halt criminal proceedings under Section 138 of the NI Act against company directors. This limits the moratorium’s protective reach, leaving directors exposed to prosecution during insolvency.
NCLAT rules that a petition filed during an existing interim moratorium under Section 95 IBC is non-est and incapable of initiating a fresh moratorium, reinforcing procedural safeguards against abuse of process in personal guarantor insolvency cases. The decision clarifies that only a validly admitted petition can trigger moratorium protections.