Case Law Details
Jeny Thankachan Vs Union of India (Kerala High Court)
The case of Jeny Thankachan vs. Union of India, heard in the Kerala High Court, revolves around the interpretation of the Insolvency and Bankruptcy Code, 2016 (IBC) concerning the filing of an application before the National Company Law Tribunal (NCLT) and its implications on the commencement of an interim moratorium. The petitioner, a sleeping partner in a Limited Liability Partnership (LLP) firm, sought relief under the IBC claiming that its provisions should supersede those of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the Act), due to the effective date of insolvency resolution and bankruptcy for individuals and partnership firms.
Initiation of Proceedings: The petitioner, aggrieved by coercive actions taken by a bank under the Act, initiated insolvency resolution proceedings under Section 94 of the IBC before the NCLT.
Legal Proceedings: The bank pursued legal action under the Act against the petitioner as a guarantor for the LLP’s loan default, leading to a conflict between the IBC and the Act.
Petitioner’s Argument: The petitioner argued that the filing of the application under Section 94 of the IBC should trigger an interim moratorium, staying all legal actions and proceedings against the debtor.
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