# In the matter of Preet Tractors Pvt. Ltd. CA No. 174-2017 IN CP (IB) No. 61-Chd-Hry-2017

> NCLT judgment dated 2017-11-21. Citation: TCN-2017-NCLT-00156. M.S Motors, the operational creditor, filed a case against Preet Tractors Pvt. Ltd., the…

- **Court:** NCLT
- **Order date:** 21 Nov 2017
- **Citation:** TCN-2017-NCLT-00156
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/preet-tractors-pvt-ltd-ca-no-174-2017-in-cp-ib-no-61-chd-hry-2017-6fddde3a

## Summary

### Background

M.S Motors, the operational creditor, filed a case against Preet Tractors Pvt. Ltd., the corporate debtor, under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional submitted a report stating that all claims made by various creditors had been satisfied.

## Facts

M.S Motors, the operational creditor, initiated proceedings against Preet Tractors Pvt. Ltd., the corporate debtor, under the Insolvency and Bankruptcy Code, 2016. The Resolution Professional submitted a report indicating that all claims made by various creditors, including the operational creditor and employees of the corporate debtor, had been satisfied. The payment to the creditors had been sent. The valuation process had not yet started. The Resolution Professional's fees had been paid. The moratorium was in effect until 25.09.2017.

## Issues and analysis

### Issue 1: Whether the moratorium imposed on the corporate debtor should be vacated given that all creditors' …

**Ratio:** The principle is that a moratorium is intended to protect the corporate debtor during the

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**Reasoning:** The court reasoned that since all creditors' claims had been satisfied by the corporate

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**Interpretation:** The moratorium, designed to provide a shield during insolvency proceedings,

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**Application:** Given that Preet Tractors Pvt. Ltd. had satisfied all creditor claims, the

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** M.S Mo…
- **Respondents:** Preet Tractors…
- **Advocates:** Atul V.…; Vikas…; +3 more

## Timeline

- **2017-11-17 — Resolution Professional'…**: The Resolution Professional submitted his report stating that all claims made before him…
- **2017-09-25 — Moratorium…**: The moratorium dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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