# In the matter of  V.R.Swetha Naidu Vs. the Secretary to Government & Anr.,  W.P.No.21277 of 2022

> HC judgment dated 2022-09-01. Citation: TCN-2022-HC-00025. The writ petition was filed as a public interest litigation by a law student concerning the…

- **Court:** HC
- **Order date:** 1 Sept 2022
- **Citation:** TCN-2022-HC-00025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/vrswetha-naidu-vs-the-secretary-to-government-anr-wpno21277-of-2022-61729643

## Summary

### Background

The writ petition was filed as a public interest litigation by a law student concerning the application of certain provisions of the Insolvency and Bankruptcy Code, 2016 (IBC), specifically Sections 12 and 14. The petitioner contended that the moratorium under Section 14 of the IBC should only apply to monetary claims against the corporate debtor and not to non-monetary obligations or decrees for specific performance. The petitioner also raised concerns about delays in the Corporate Insolvency Resolution Process (CIRP) and the Adjudicatory Authority not strictly adhering to the timelines stipulated under Section 12 of the IBC.

## Facts

The petitioner, a law student, filed a writ petition in the nature of public interest litigation, raising concerns about the application of certain provisions of the Insolvency and Bankruptcy Code, 2016 (IBC). The petitioner specifically challenged the scope of the moratorium under Section 14 of the IBC, arguing that it should only apply to monetary claims against the corporate debtor and not to non-monetary obligations or decrees for specific performance. The petitioner also raised concerns about delays in the Corporate Insolvency Resolution Process (CIRP) and the Adjudicatory Authority not strictly adhering to the timelines stipulated under Section 12 of the IBC. The petitioner contended that the moratorium should not affect proceedings where the corporate debtor

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## Issues and analysis

### Issue 1: Whether the moratorium under Section 14 of the IBC applies to non-monetary obligations or decrees …

**Ratio:** The moratorium under Section 14 of the IBC is intended to protect the corporate debtor

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**Reasoning:** The court reasoned that the primary focus of the IBC is to ensure the revival and

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**Interpretation:** Section 14 of the IBC should be interpreted in a manner that promotes the

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**Application:** In this case, the court held that the moratorium under Section 14 of the IBC

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## Parties

- **Judges:** Mr.Munishwar Nath…; Mrs.Justice…
- **Appellants:** V.R.Swetha…
- **Respondents:** The Secretary to…
- **Other parties:** Kohi…

## Timeline

- **2022-08-23 — Reserved…**: The case was reserved…
- **2022-09-01 — Delivere…**: The case was delivered…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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