Bank could not have continued the proceedings under the SARFAESI Act once the CIRP was initiated and the moratorium was ordered – Indian Overseas Bank Vs. M/s RCM Infrastructure Ltd. and another – Supreme Court
Hon’ble Supreme Court held that in the present case, the balance amount has been accepted by the appellant Bank on 08.03.2019. The sale under the statutory scheme as contemplated under Rules 8 and 9 of the said Rules would stand completed only on 08.03.2019. This date falls much after 03.01.2019, i.e., on which date CIRP commenced and moratorium was ordered. In view of the provisions of Section 14(1)(c) of the IBC, which have overriding effect over any other law, any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the SARFAESI Act is prohibited. We are of the view that the appellant Bank could not have continued the proceedings under the SARFAESI Act once the CIRP was initiated and the moratorium was ordered.