The Explanation to Section 10A of IBC removes any doubt by clarifying that the provisions of the Section shall not apply in respect of any default committed prior to 25.03.2020 – Carissa Investments LLC Vs. Indu Techzone Pvt. Ltd. – NCLAT Chennai
NCLAT held that the object of the legislation was to suspend the operation of Sections 7, 9 and 10 in respect of defaults arising on or after March 25th 2020 when the lockdown was disrupting normal business operation. This Tribunal is of the considered view that the ‘Explanation’ removes any doubt by clarifying that the provisions of the Section shall not apply in respect of any default committed prior to 25.03.2020. In the instant case, admittedly, the date of default is 31.03.2020 and the ratio of the Hon’ble Apex Court in Ramesh Kymal (2021) ibclaw.in 08 SC regarding Section 10-A of the Code the object of which was sought to be achieved by enacting the Provision, is squarely applicable to the facts of this case.
