IBC | Moratorium Does Not Extinguish Claim : Supreme Court

The NCLAT ruled that a non-impleadment of an owner party by a liquidator does not constitute malafide intent, and an application under Section 19 cannot be considered if ownership was uncertain. The case dealt with a liquidator's failure to include an owner in proceedings, but the tribunal found that the ownership was not clear, and no malafide intention was involved. This ruling clarifies that uncertainty in ownership does not invalidate a liquidator’s actions or make them malafide. It highlights the complexities of ownership disputes in insolvency proceedings and the discretion of the liquidator in such matters.