# In the matter of Dulisons Cereals vs. The State of Maharashtra & Ors.

> HC judgment dated 2026-03-10. Citation: TCN-2026-HC-00007. The case involves an appeal filed by M/s. Dulisons Cereals against an order passed by the Special…

- **Court:** HC
- **Order date:** 10 Mar 2026
- **Citation:** TCN-2026-HC-00007
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/bombay-high-court-panaji/dulisons-cereals-vs-the-state-of-maharashtra-ors-ee69cb6c

## Summary

### Background

The case involves an appeal filed by M/s. Dulisons Cereals against an order passed by the Special Judge (MPID), City Civil & Sessions Court, Gr. Bombay, rejecting their application to stay proceedings in MA/151/2020, which was filed under the MPID Act.

## Facts

M/s. Dulisons Cereals, through its proprietor Smt. Kanta Gupta, filed an appeal against the rejection of their application to stay proceedings in MA/151/2020.

The State of Maharashtra (through Competent Authority) filed MA/151/2020 under Section 8 of the MPID Act, seeking attachment of the appellant's property.

The appellant argued that an interim moratorium under Section 96 of the IBC should stay the MPID Act proceedings.

SBI had filed an application before the NCLT, Mumbai, against Smt. Kanta Gupta under Section 95(1) of the IBC.

The respondents contended that the MPID Act and IBC operate in different spheres and that there is no debtor-creditor relationship between the appellant and the State.

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## Issues and analysis

### Issue 1: Whether the interim moratorium under Section 96 of the IBC can stay proceedings under Section 8 of …

**Ratio:** The court held that the moratorium under Section 96 of the IBC cannot be applied in this

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**Reasoning:** The court reasoned that the attachment proceedings under the MPID Act are intended to

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**Interpretation:** The court interpreted Section 96 of the IBC to apply only when there is a

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**Application:** The court applied this interpretation to the facts of the case, finding that

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## Parties

- **Judges:** A. S. Ga…; SHYAM C. C…
- **Appellants:** M/s. Dulisons…
- **Respondents:** The State of…; National Spot…
- **Other parties:** Kalabu…
- **Advocates:** Vinay Bhan…; Abhiraj…; +8 more

## Timeline

- **2023-11-04 — Order Da…**: Order dated 4th November 2023, passed by the learned Special Judge (MPID), City Civil &…
- **2026-02-03 — Reserved…**: Reserved on 3rd…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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