Proviso To S.10A Of IBC Doesn't Bar CIRP Applications Where Default Continues Beyond Moratorium Period: Madras High Court

The Madras High Court addressed a case regarding Section 10-A of the Insolvency and Bankruptcy Code (IBC), ruling that the proviso does not bar Corporate Insolvency Resolution Process (CIRP) applications if defaults continue beyond the moratorium period. The court clarified that the provision allows for the continuation of CIRP applications if defaults persist beyond the period, affirming that the IBC’s intent is to provide a mechanism for resolution even in such cases. The judgment is a significant interpretation of the IBC, enhancing the scope for insolvency resolution and ensuring that financial defaults do not impede the process.