By virtue of Section 14(1)(d) of the Insolvency and Bankruptcy Code, 2016 (IBC), the Applicant is prohibited in law from taking any action against the Corporate Debtor for the recovery of property. This legal principle was recently confirmed by the NCLT in the matter of Sudha Apparels Limited v. Mr. Ravi Sethia, (2024) ibclaw.in 884 NCLT decided on 1.10.2024. In this case study, inter alia, the legal principle emanating from section 14(1) of IBC is discussed briefly.
