Application u/s 9 Of IBC Cannot Be Admitted For Invoices Covered By Prohibited Period under IBC: NCLAT

The NCLAT ruled that an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) cannot be admitted for invoices covered by the prohibited period under the IBC. The case involved a creditor who sought to initiate insolvency proceedings for dues incurred during the moratorium period, which is prohibited under the IBC. The tribunal held that any claims related to the period during which the corporate debtor is under moratorium cannot be entertained. This decision strengthens the protections available to corporate debtors under the IBC, ensuring that creditors cannot pursue claims that fall under the prohibited period.