SREI Equipment Finance Limited Vs Rajesh Bajirao Khandewar (Bombay High Court)
Bombay High Court held that order of District Consumer Dispute Redressal Commission passed after imposition of moratorium u/s. 14 of Insolvency and Bankruptcy Code cannot have binding effect of the company. Accordingly, petition is allowed.
Facts- The petitioner is a Company registered under the Companies Act. The application for initiation of insolvency resolution process was admitted and moratorium u/s. 14 of the Insolvency and Bankruptcy Code came to be imposed. The resolution plan of the petitioner Company has been sanctioned by the National Company Law Tribunal, Kolkata Bench vide order dated 11.08.2023.
During pendency of the moratorium proceedings, on 26.10.2021, the respondent no.1 preferred a complaint before the District Consumer Dispute Redressal Commission. This complaint was filed against respondent nos.2 and 3 herein, and petitioner was not made a party to the same. The contention of respondent no.1 in the complaint was that the petitioner Company has illegally repossessed his JCB machine on the ground of non-payment of installments, which machine had been purchased after availing finance from the company. By order dated 20.07.2022, the said complaint filed by respondent no.1 came to be allowed and respondent nos. 2 and 3 were directed to return the JCB machine upon payment of dues.
