Proceedings Under IBC 2016 Halts Legal Suit Against Corporate Debtor

Future Enterprises Limited Vs Circle 9(3)(2) (ITAT Mumbai) Introduction: In a critical decision, the Income Tax Appellate Tribunal (ITAT) in Mumbai dismissed an appeal by Future Enterprises Limited due to the ongoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC) 2016. The Tribunal emphasized that no suit or proceeding can continue against the corporate debtor until the conclusion of the proceedings under the IBC. Analysis: The appeal was dismissed following the order by the National Company Law Tribunal (NCLT) declaring a moratorium period under Section...