Order U/S 45A Of ESI Act Cannot Be Passed During Moratorium Period U/S 14 Of IBC: NCLT Allahabad

The National Company Law Tribunal (NCLT) Allahabad ruled that an order under Section 45A of the Employees’ State Insurance (ESI) Act cannot be passed during the moratorium period under Section 14 of the Insolvency and Bankruptcy Code (IBC). The case involved an order for recovery of ESI dues during the moratorium period of an insolvency resolution process. The NCLT held that the moratorium period prohibits such recovery actions and that the ESI order was invalid. This decision underscores the protective scope of the moratorium period in insolvency proceedings and reinforces the need to respect the statutory stay on recovery actions during this period.