# In the matter of Raghav Sarees Pvt. Ltd.

> NCLT judgment dated 2023-08-02. Citation: TCN-2023-NCLT-02199. The application was filed under sections 14(1)(b) and 74(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Aug 2023
- **Citation:** TCN-2023-NCLT-02199
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raghav-sarees-pvt-ltd-08a8dc6c

## Summary

### Background

The application was filed under sections 14(1)(b) and 74(1) of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional (RP) of Raghav Sarees Pvt. Ltd., the Corporate Debtor. The RP sought an order directing respondents 1-4 to refund Rs.76,693/- with interest or face punishment under section 74 of the IBC. The Adjudicating Authority had initiated CIRP against Raghav Sarees Pvt. Ltd. on 2022-06-13, based on a petition filed by Reliance Home Finance Limited, the Financial Creditor. Public announcement was made on 2022-06-15, inviting claims from creditors. The IRP intimated the suspended Board of Directors about the CIRP initiation.

## Facts

Reliance Home Finance Limited initiated Corporate Insolvency Resolution Process (CIRP) against Raghav Sarees Pvt. Ltd. The CIRP was initiated on 2022-06-13. Mr. Niraj Kumar Agrawal was appointed as the Interim Resolution Professional (IRP). After the CIRP initiation and the declaration of a moratorium, the IRP discovered that the respondents had issued cheques from the Corporate Debtor's account. Specifically, a cheque for Rs.66,000/- dated 2022-06-16 was deposited on 2022-06-16, violating the moratorium. The IRP informed the respondents about the violation, but they claimed the cheque was handed over before the CIRP commencement. The IRP filed an application seeking a refund of Rs.76,693/- from the respondents, alleging a violation of the moratorium under Section 14

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## Issues and analysis

### Issue 1: Whether the respondents violated the moratorium declared under Section 14 of the Insolvency and …

**Ratio:** Section 14 of the Insolvency and Bankruptcy Code, 2016, imposes a moratorium upon the

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**Reasoning:** The Adjudicating Authority observed that the respondents issued cheques after the CIRP

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**Interpretation:** The moratorium under Section 14 is intended to protect the assets of the

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**Application:** In this case, the respondents issued cheques after the CIRP initiation, which

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** Raghav Sarees…; Narendra Kumar…
- **Advocates:** Shaunak…; Sourav…; +2 more

## Timeline

- **2022-06-13 — CIRP Init…**: CIRP initiated against Raghav Sarees Pvt. Ltd. based on a petition by Reliance Home…
- **2022-06-13 — Moratorium D…**: Moratorium declared under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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