# In the matter of G. K. Ispat Pvt. Ltd. vs. Consolidated Construction Consortium Limited Commercial Appeal No. 250 of 2021

> HC judgment dated 2023-01-20. Citation: TCN-2023-HC-00086. The appeal was filed under Section 13 (1A) of the Commercial Courts Act, 2015, to set aside a…

- **Court:** HC
- **Order date:** 20 Jan 2023
- **Citation:** TCN-2023-HC-00086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/g-k-ispat-pvt-ltd-vs-consolidated-construction-consortium-limited-commercial-app-40997c58

## Summary

### Background

The appeal was filed under Section 13 (1A) of the Commercial Courts Act, 2015, to set aside a judgment and decree passed by the LXXXIII Addl. City Civil and Session Judge, Bengaluru, in Commercial O.S. No. 5512/2016 and to allow the plaint in Commercial O.S. No. 25647/2016.

## Facts

The respondent, M/S Consolidated Construction Consortium Limited, filed a suit, O.S. No. 5512/2016, on July 29, 2016, which was decreed, holding the appellant, M/S G.K. Ispat Pvt. Ltd., liable to pay certain sums with interest. Subsequently, the appellant filed another suit, O.S. No. 25647/2016, before the Civil Court, Bengaluru, to recover sums from the respondent, but this suit was rejected. The appellant challenged both decrees in a single commercial appeal. In 2020, the State Bank of India, a financial creditor, initiated proceedings against the respondent before the NCLT, Chennai, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IB Code). These proceedings were registered as IBA No. 483/2020. An Interim Resolution Professional was appointed under

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## Issues and analysis

### Issue 1: Whether the commercial appeal is barred by the moratorium declared under Section 14 of the …

**Ratio:** The institution or continuation of any suit or legal proceeding against a corporate

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**Reasoning:** The court noted that a moratorium was declared by the NCLT on April 20, 2021, under

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**Interpretation:** The court interpreted Section 14(1)(a) of the IB Code as a clear and absolute

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**Application:** Given that the NCLT had admitted the application and declared a moratorium on

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## Parties

- **Judges:** G.NARE…; S RACH…
- **Appellants:** M/S G.K. ISPAT…
- **Respondents:** M/s. Consolidated…
- **Advocates:** For the appellant:…; For the respondent…; +2 more

## Timeline

- **July 29, 2016 — Suit filed by r…**: Respondent filed O.S. No. 5512/2016, which was later decreed, making the appellant liable…
- **March 30, 2021 — Judgment and Decree in…**: LXXXIII Addl. City Civil and Session Judge, Bengaluru, passed judgment and decree in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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