[2020] ibclaw.in 52 NCLT

NCLT held that the Executive in the Promulgation of the Ordinance to meet an extra-ordinary situation and to avoid causing further stress to the already beleaguered businesses due to the prevalence of COVID pandemics throughout the world, including India and also in addition affected by the lock down enforced by the Union as well as the States of the Union, all beyond their control have chosen to suspend filing of any application in relation to defaults arising on or after 25.03.2020 under Section 7, 9 and 10 of Code for a period of six months extendable by a further period not exceeding one year as per the main provision of Section 10A newly inserted and further by virtue of proviso thereunder to the main provision of Section 10A has further qualified the main proviso that in relation to default arising on or after 25.03.2020 (incidentally the date on which the lock down came into force) and during the said period to be correlated with the main provision of Section 10A which for the time being is specified as six months extendable up to a year, no application shall ever be filed thereby both the main provision as well as the proviso making it amply clear that the suspension in filing the application in relation to defaults arising on or after 25.03.2020 is to be made applicable retrospectively from the said date. The Explanation given under Section 10A only reinforces the retrospectivity in the applicability of Section 10A in as much as providing that the defaults which had occurred prior to the date of 25.03.2020.