Recovery Of Corporate Debtor's Property By Owner/Landlord Is Not Permissible During Moratorium Period: NCLT Mumbai

The NCLT Mumbai held that property recovery by the owner or landlord from a corporate debtor is not permissible during the moratorium period under the Corporate Insolvency Resolution Process (CIRP). The tribunal emphasized that Section 14 of the IBC prohibits such actions to ensure the corporate debtor’s operations continue uninterrupted. This ruling reinforces the protection offered to corporate debtors during insolvency proceedings, preventing landlords from reclaiming leased properties during the moratorium.