# In the matter of  Shree Bhawani Paper Mills Limited C A No. 100/2018 in C P No. (IB) 110/ALD/2017

> NCLT judgment dated 2018-09-10. Citation: TCN-2018-NCLT-00798. The case involves a Corporate Debtor, Shree Bhawani Paper Mills Limited, facing proceedings…

- **Court:** NCLT
- **Order date:** 10 Sept 2018
- **Citation:** TCN-2018-NCLT-00798
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-bhawani-paper-mills-limited-c-a-no-1002018-in-c-p-no-ib-110ald2017-e544311c

## Summary

### Background

The case involves a Corporate Debtor, Shree Bhawani Paper Mills Limited, facing proceedings under the Insolvency and Bankruptcy Code (IBC). The Resolution Professional (RP) filed an application (CA No. 203/2018) seeking a direction to the Bombay Stock Exchange to prevent it from initiating proceedings for alleged non-compliances of SEBI (LODR) Regulations, 2015, during the moratorium period. The RP also sought exemption from compliances of SEBI (LODR) Regulations, 2015, and a direction against Central Depository Services (India) Ltd. and National Securities Depository Services (India) Ltd. to prevent them from initiating punitive action and restoring services for the Corporate Debtor.

## Facts

Shree Bhawani Paper Mills Limited is undergoing Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP) filed an application (CA No. 203/2018) under Section 14 read with Section 60(5) of the IBC, seeking a direction to the Bombay Stock Exchange (BSE) to not initiate proceedings for alleged non-compliances of SEBI (LODR) Regulations, 2015, during the moratorium period. The RP also sought exemption from compliances of SEBI (LODR) Regulations, 2015, and a direction against Central Depository Services (India) Ltd. and National Securities Depository Services (India) Ltd. to prevent them from initiating punitive action and restore services for the Corporate Debtor. The RP argued that Section 14(1)(a) of the IBC provides a moratorium against

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## Issues and analysis

### Issue 1: Whether the Bombay Stock Exchange can be restrained from initiating proceedings for alleged …

**Ratio:** Regulatory authorities are not debarred from enforcing regulations prescribed under the

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**Reasoning:** The court reasoned that Section 14 of the I&B Code does not bar regulatory

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**Interpretation:** Section 14 of the I&B Code provides for a moratorium to protect the

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**Application:** The court applied the ratio to the facts by stating that the Bombay Stock

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## Parties

- **Judges:** Saroj Ra…; V. P. S…
- **Appellants:** Sh. Namit…
- **Respondents:** Shree Bhawani…

## Timeline

- **2018-09-10 — Order Da…**: Order passed by the National…
- **2018-09-28 — Next Hearin…**: Matter listed 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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