# In the matter of Bohra Industries Limited IA No. 208-JPR-2020 in C.P. No. (I.B)-157-7-JPR-2019

> NCLT judgment dated 2021-10-13. Citation: TCN-2021-NCLT-00743. The Resolution Professional of Bohra Industries Limited, the Corporate Debtor, filed an…

- **Court:** NCLT
- **Order date:** 13 Oct 2021
- **Citation:** TCN-2021-NCLT-00743
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bohra-industries-limited-ia-no-208-jpr-2020-in-cp-no-ib-157-7-jpr-2019-9533478c

## Summary

### Background

The Resolution Professional of Bohra Industries Limited, the Corporate Debtor, filed an application against the National Stock Exchange of India Ltd. (NSE) seeking to quash a letter dated 23.06.2020 issued by NSE. The letter imposed a fine on Bohra Industries for non-compliance with SEBI regulations regarding timely submission of financial results and shareholding patterns. The CIRP against Bohra Industries had commenced on 07.08.2019. Despite the moratorium under Section 14 of the IBC, NSE insisted on the payment of the fine. The Resolution Professional argued that the fine was levied for non-compliances that occurred before and during the CIRP, and the imposition of the fine violated the moratorium.

## Facts

Bohra Industries Limited faced Corporate Insolvency Resolution Process (CIRP) initiated on 07.08.2019. The National Stock Exchange of India Ltd. (NSE) imposed a fine of Rs.8,38,980 (inclusive of 18% GST) on Bohra Industries for delayed submission of financial results and shareholding patterns for the quarters ending March 31, 2019, and September 30, 2019. These delays occurred before and during the CIRP. The Resolution Professional (RP) informed NSE about the CIRP and the moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC), 2016. NSE insisted on payment of the fine despite the moratorium. The RP filed an application (IA No.208/JPR/2020) to quash NSE's letter imposing the fine. NSE did not file a reply to the application, and the matter proceeded ex

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## Issues and analysis

### Issue 1: Whether the imposition of a fine by the National Stock Exchange of India Ltd. on Bohra Industries …

**Ratio:** Section 14 of the IBC imposes a moratorium on the institution or continuation of suits or

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**Reasoning:** The court reasoned that the fine was levied for delays in compliance that occurred before

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**Interpretation:** Section 14 of the IBC is interpreted to provide a comprehensive moratorium that

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**Application:** In this case, the court applied the ratio of Section 14 to the facts, noting

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## Parties

- **Judges:** Ajay Kumar…; RaghuNa…
- **Appellants:** Bohra Industries…
- **Respondents:** Bohra Industries…; National Stock…

## Timeline

- **2019-07-08 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2020-06-12 — Fine Lev…**: National Stock Exchange of India Ltd. levied a fine on Bohra Industries Limited for…

## 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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