# In the matter of Maxx Mobile Communication Limited MA No. 2642 of 2019 in C.P. (IB) No. 1687-MB-2018

> NCLT judgment dated 2021-05-19. Citation: TCN-2021-NCLT-02113. The case involves an application by the Resolution Professional (RP) of the Corporate Debtor,…

- **Court:** NCLT
- **Order date:** 19 May 2021
- **Citation:** TCN-2021-NCLT-02113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maxx-mobile-communication-limited-ma-no-2642-of-2019-in-cp-ib-no-1687-mb-2018-949c3a4a

## Summary

### Background

The case involves an application by the Resolution Professional (RP) of the Corporate Debtor, Maxx Mobile Communication Limited, seeking directions against the Respondent, The Development Commissioner, to prevent them from proceeding with penalty proceedings against the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 31.01.2019. The RP argues that the Respondent's actions, including notices for outstanding dues and eviction, violate the moratorium imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC), 2016. The Respondent contends that the actions were initiated before the commencement of the CIRP and therefore do not contravene the moratorium.

## Facts

The Corporate Debtor, Maxx Mobile Communication Limited, faced Corporate Insolvency Resolution Process (CIRP) initiated on 31.01.2019. Ashok Kumar Dewan was appointed as the Resolution Professional (RP). The Development Commissioner, SEEPZ - Special Economic Zone, raised claims against the Corporate Debtor for government dues related to premises, amounting to ₹. 38,35,552.94/-. Notices were issued by the Estate Manager of the SEZ Authority on 08.09.2015 under the Public Premises (Eviction of Unauthorized Occupants) Act, 1971, and by the Respondent on 18.12.2015 for arrears of rent amounting to ₹. 35,53,553/-. The Corporate Debtor was also in arrears of ₹. 2,98,37,311/- towards duty. The Respondent issued a notice on 11.02.2019 under the Foreign Trade (Development and

…

## Issues and analysis

### Issue 1: Whether the actions initiated by the Respondent, including notices for outstanding dues and …

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

…

**Reasoning:** The court reasoned that a plain reading of Section 14 indicates that neither any suit or

…

**Interpretation:** Section 14 is interpreted to provide a comprehensive moratorium that prevents

…

**Application:** The court applied the ratio to the facts by noting that the dues claimed under

…

## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** Ashok Kumar…
- **Respondents:** Maxx Mobile…; The Development…

## Timeline

- **2019-01-31 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Maxx Mobile…
- **2019-02-03 — Public Annou…**: Public Announcement in Form – A…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/maxx-mobile-communication-limited-ma-no-2642-of-2019-in-cp-ib-no-1687-mb-2018-949c3a4a