Funds Use by Suspended Management Post-Moratorium Needs IRP Nod

Sunil Gutte Vs Avil Menezes (NCLAT Delhi) NCLAT Delhi held that once moratorium is declared, suspended management is also strictly prohibited from directly or indirectly deploying the funds of the Corporate Debtor unilaterally, without the authorisation of IRP, to clear any dues of any Financial Creditor or Operational Creditor. Facts- The present appeal filed u/s. 61 of Insolvency and Bankruptcy Code 2016 by the Appellant arises out of the Order dated 04.02.2025 passed by the Adjudicating Authority. By the impugned order, the Adjudicating Authority has allowed the application filed by the Res...