The applicability of interim moratorium under Section 96 of IBC, 2016, on the proceedings initiated by a Bank under SARFAESI Act, cannot be excluded merely because the bank has taken possession prior to commencement of the proceedings against Personal Guarantor under the IBC, 2016 – Sanjay Dhingra Vs. IDBI Bank Ltd. and Ors. – Delhi High Court

Hon’ble Delhi High Court held that after commencement of the insolvency proceedings under the IBC, 2016, against the petitioner, in his capacity as a personal guarantor with respect to default of a loan account, the interim moratorium shall be applicable to all the debts, including the debt owed by the petitioner to the respondent-bank, in his capacity as a personal guarantor, for which property in question was mortgaged by the petitioner, against which SARFAESI proceedings have been initiated by the bank.

The Hon’ble Court also held that judgment of Kerala High Court in the case of Jeny Thankachan Vs. Union of India and Ors. (2023) ibclaw.in 918 HC does not apply to the facts and circumstances of the present case.

The applicability of interim moratorium under Section 96 of IBC, 2016, on the proceedings initiated by a Bank under SARFAESI Act, cannot be excluded merely because the bank has taken possession prior to commencement of the proceedings against Personal Guarantor under the IBC, 2016 – Sanjay Dhingra Vs. IDBI Bank Ltd. and Ors. – Delhi High Court Read Post »