Section 60(6) of the IBC does contemplate exclusion of the entire period during which the moratorium was in force in respect of Corporate Debtor in regard to a proceeding as contemplated therein at the hands of the Corporate Debtor – New Delhi Municipal Council Vs. Minosha India Ltd. – Supreme Court
The question which falls for determination in this appeal is the impact of Section 60(6) of the Insolvency and Bankruptcy Code (IBC) and whether the aforesaid provision gives rise to a new lease of life to a proceeding at the instance of the corporate debtor on the basis of a moratorium which is put in place by virtue of the order passed under section 14 of the IBC and whether corporate debtor can take advantage of the same to bring the application in this case filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (the 1996 Act).
Hon’ble Supreme Court held that while it may be true that proceedings by the corporate debtor through the resolution professional is contemplated, it is not impossible to contemplate that the resolution professional for whatever reason it may be, does not discharge his duties and conduct proceedings in all matters as he should. Section 60(6) of the IBC does contemplate exclusion of the entire period during which the moratorium was in force in respect of corporate debtor in regard to a proceeding as contemplated therein at the hands of the corporate debtor.
