No bar against legal proceedings continuing concurrently with IBC liquidation proceedings 

Elecon Engineering Company Limited Vs Energo Engineering Projects (Delhi High Court)

There is no absolute bar against a lawsuit or legal proceedings continuing concurrently with the liquidation proceedings under Section 33(5) of the IBC (Liquidation Moratorium), unlike Section 14 of the IBC (CIRP Moratorium).

Facts of the Case:

The case was filed seeking relief of permanent injunction restraining the defendant no. 1 company from encashment of bank guarantees and for recovery of a sum of Rs. 10,69,77,650/-

Plaintiff contended that defendant no. 1 had wrongfully and unlawfully invoked/encashed the contract performance bank guarantees and advance bank guarantees issued by defendant no. 2 and defendant no. 3 respectively.

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