S.10A of IBC Doesn’t Bar CIRP Applications Where Default Continues Beyond Moratorium Period: Madras HC

The Madras High Court held that Section 10A of the Insolvency and Bankruptcy Code (IBC) does not bar CIRP (Corporate Insolvency Resolution Process) applications when the default continues beyond the moratorium period. The Court emphasized that the insolvency process should be allowed to proceed if there is a continuing default despite the moratorium period ending. The judgment clarified that Section 10A does not provide a blanket ban on insolvency proceedings if the default persists and protects creditors’ rights to initiate CIRP for the resolution of defaults.