Legitimate Claim of Creditors cannot be Defeated Using Moratorium as Shield: NCLT Rules on Punjab National Bank Case

NCLT Rules on Creditor Claims: The National Company Law Tribunal (NCLT) ruled that legitimate claims by creditors cannot be nullified by invoking a moratorium under the Insolvency and Bankruptcy Code (IBC). In a case involving Punjab National Bank, the tribunal held that the moratorium is not a shield against creditor claims. This decision reinforces creditors' rights in insolvency proceedings and limits misuse of moratorium provisions by debtors.