Existence of moratorium ceases once proceedings under IBC culminates

Sunil Kumar Pandey and Anr Vs Union of India (Delhi High Court)

Delhi High Court held that the moratorium will cease to exist once the proceedings under the Insolvency and Bankruptcy Code culminates.

Facts- The Appellants have placed on record the to show that they have been defrauded by one builder, namely, Kunal Structural Developers and Industries Pvt Ltd. (Respondent No.3) in collusion with Indiabulls Housing Finance Limited (Respondent No. 4).
The Appellant has already approached the State Consumer Disputes Redressal Commission in Sunil Kumar Pandey v. Kunal Structural Developers and Industries Pvt Ltd and Anr and secured an order in their favour.

The Appellants has also filed a civil suit, whereby, he has sought injunctions restraining the Respondent Bank from encashing the cheques given by the Appellants, and also, demanding the EMI from the Appellants every month.

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