# In the matter of New Delhi Municipal Council Vs. Minosha India Limited Civil Appeal No. 3470 of 2022

> SC judgment dated 2022-04-27. Citation: TCN-2022-SC-00052. The case involves a dispute between New Delhi Municipal Council (NDMC) and Minosha India Limited,…

- **Court:** SC
- **Order date:** 27 Apr 2022
- **Citation:** TCN-2022-SC-00052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/new-delhi-municipal-council-vs-minosha-india-limited-civil-appeal-no-3470-of-202-7d7f0d0d

## Summary

### Background

The case involves a dispute between New Delhi Municipal Council (NDMC) and Minosha India Limited, arising from a purchase order placed by NDMC with Minosha India Limited. NDMC issued a termination notice to Minosha due to alleged inaction. Minosha approached the High Court of Delhi, which directed NDMC to provide a hearing. NDMC rejected Minosha's representation. Minosha invoked arbitration, but NDMC did not consent to the suggested arbitrators. NCLT Mumbai admitted an application under Section 10 of the IBC and declared a moratorium. A resolution plan was approved. Minosha filed an application under Section 11(6) of the Arbitration and Conciliation Act, 1996. The High Court of Delhi allowed the application and appointed an arbitrator.

## Facts

On 20.02.2015, New Delhi Municipal Council (NDMC) placed a purchase order of Rs.16,20,00,000/- with Minosha India Limited. NDMC later issued a termination notice to Minosha due to alleged inaction. Minosha approached the High Court of Delhi, which directed NDMC to provide a hearing. NDMC rejected Minosha's representation on 17.05.2016. Minosha invoked arbitration, and NDMC replied on 20.07.2016, disagreeing with the suggested arbitrators. On 14.05.2018, NCLT Mumbai admitted an application under Section 10 of the IBC and declared a moratorium. On 28.11.2019, a resolution plan was approved by the NCLT. On 25.11.2020, Minosha filed an application under Section 11(6) of the Arbitration and Conciliation Act, 1996. The High Court of Delhi allowed the application on

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## Issues and analysis

### Issue 1: Whether Section 60(6) of the Insolvency and Bankruptcy Code (IBC) provides a new lease of life to a …

**Ratio:** Section 60(6) of the IBC contemplates the exclusion of the entire period during which the

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**Reasoning:** The court reasoned that the words 'for which an order of moratorium has been made under

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**Interpretation:** The court interpreted Section 60(6) to mean that the moratorium period is

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**Application:** The court applied this ratio to the facts by holding that the moratorium period

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## Parties

- **Judges:** K.M. Jo…; Hrishikes…
- **Appellants:** NEW DELHI…
- **Respondents:** MINOSHA INDIA…

## Timeline

- **2015-02-20 — Purchase…**: New Delhi Municipal Council (NDMC) placed a purchase order of Rs.16,20,00,000/- with…
- **2016-05-17 — Rejection of Representat…**: NDMC rejected Minosha's…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(6) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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