# In the matter of Ace Healthways Private Limited CP(IB) No.115-Chd-Pb-2018

> NCLT judgment dated 2018-10-26. Citation: TCN-2018-NCLT-00488. The case pertains to an application filed by M/s. Bio Diagnostics, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 26 Oct 2018
- **Citation:** TCN-2018-NCLT-00488
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ace-healthways-private-limited-cpib-no115-chd-pb-2018-63c89e9a

## Summary

### Background

The case pertains to an application filed by M/s. Bio Diagnostics, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the insolvency resolution process against M/s. Ace Healthways Private Limited, the Corporate Debtor. The insolvency resolution process was admitted on 18.10.2018. The matter was fixed for passing a formal order declaring a moratorium and appointing an Interim Resolution Professional.

## Facts

M/s. Bio Diagnostics, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Ace Healthways Private Limited, the Corporate Debtor. The Adjudicating Authority admitted the application on 18.10.2018. The court appointed Mr. Rajnish Gupta as the Interim Resolution Professional (IRP). The court declared a moratorium under Section 14 of the Code, prohibiting the institution or continuation of suits against the Corporate Debtor, the transfer of assets, and actions to enforce security interests. The order directed the IRP to take control of the Corporate Debtor's assets and prepare an inventory. The Corporate Debtor's directors and personnel were

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## Issues and analysis

### Issue 1: Whether to declare a moratorium under Section 14 …

**Ratio:** Section 14(1) of the Insolvency and Bankruptcy Code, 2016, provides for the declaration

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**Reasoning:** The court reasoned that declaring a moratorium is a necessary step to protect the assets

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**Interpretation:** Section 14 is interpreted to mean that upon admission of an insolvency

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**Application:** The court applied Section 14 to the facts of the case and declared a

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** M/s. Bio Diagnosti…
- **Respondents:** Ace Healthways…; M/s. Ace Healthway…
- **Advocates:** Akashdeep…

## Timeline

- **2018-10-18 — Admission of Insolvency…**: The insolvency…
- **2018-10-26 — Order Del…**: Order delivered declaring moratorium and…

## 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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