# M/s Subasri Realty Private Limited Vs Mr. N. Subramania & Anrs

> NCLAT judgment dated 2018-02-22. Citation: TCN-2018-NCLAT-00370. The case is an appeal against an order related to insolvency proceedings. The primary issue…

- **Court:** NCLAT
- **Order date:** 22 Feb 2018
- **Citation:** TCN-2018-NCLAT-00370
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-subasri-realty-private-limited-vs-mr-n-subramania-anrs-09329231

## Summary

### Background

The case is an appeal against an order related to insolvency proceedings. The primary issue revolves around the authority to sign checks on behalf of the Corporate Debtor during the moratorium period. The appellant is M/s. Subasri Realty Private Limited, and the respondents are Mr. N. Subramanian & Anr. The order clarifies the powers and responsibilities of the Resolution Professional and the Board of Directors during the moratorium.

## Facts

M/s. Subasri Realty Private Limited filed an appeal against an order related to insolvency proceedings. A key issue arose regarding who is authorized to sign checks on behalf of the Corporate Debtor during the moratorium period. The IRP (Interim Resolution Professional) requested clarification on this matter. The Appellate Tribunal had issued an order on January 12, 2018, which was relevant to this issue. The court clarified that after the appointment of the Resolution Professional and the declaration of a moratorium, the Board of Directors stands suspended. However, this suspension does not automatically extend to the Managing Director, officers, or employees of the Corporate Debtor. If these individuals had the power to sign checks before the moratorium, that power

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## Issues and analysis

### Issue 1: Whether the suspension of the Board of Directors during the moratorium period automatically …

**Ratio:** The suspension of the Board of Directors does not automatically suspend the powers of

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**Reasoning:** The court reasoned that the purpose of the moratorium is to allow the Resolution

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**Interpretation:** This clarifies that the moratorium's effect is limited to the Board of

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**Application:** In this case, the court clarified that if the Managing Director, officers, or

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** M/s. Subasri…
- **Respondents:** Corporate…; N. Subram…

## Timeline

- **2018-02-22 — Hearing…**: Learned counsel for the respondents submits that there is no chance of settlement in the…
- **2018-01-12 — Order Da…**: Order dated 12th January, 2018…

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