Consumer Protection Act, 1986, Section 23 and 25 – Insolvency and Bankruptcy Code,2016, Section 9 and 14 – Consumer – Insolvency and Bankruptcy – Execution of decree – By the impugned orders, the National Commission held that the decree cannot be executed against the-respondent company due to the operation of the moratorium under Section 14 of the IBC –National Commission has not made any adjudication on the question whether the opposite party Nos. 2to 9(the respondent Nos. 2 to 9) in the execution application were under an obligation to abide by the directions issued against the company – There is no finding recorded by the National Commission that in view of any particular provision of the IBC, moratorium will apply to the directors/officers of the company – Held that only because there is a moratorium under Section 14 of the IBC against the company, it cannot be said that no proceedings can be initiated against the opposite party Nos. 2 to 9(the respondent Nos. 2 to 9) for execution, provided that they are otherwise liable to abide by and comply with the order, which is passed against the company – The protection of the moratorium will not be available to the directors/officers of the company – Impugned judgments and orders liable to be set aside and the execution application remitted to the National Commission – The execution will continue against the opposite party Nos. 2 to 9(the respondent Nos. 2 to 9) in the execution application – It is open for the opposite party Nos. 2 to 9(the respondent Nos. 2 to 9) to raise a contention that they are not bound to implement the order sought to be executed – They are entitled to file additional objections along with documents raising the issue of executability as against them – Clarified that the issue whether opposite party Nos. 2 to9(the respondent Nos. 2 to 9) to the execution are otherwise liable, will have to be decided by the National Commission in accordance with law. (Para 7, 11 to 14)
SUPREME COURT OF INDIA
2024 STPL(Web) 58 SC
[2024 INSC 54]
Ansal Crown Heights Flat Buyers Association (Regd.) Vs. M/S. Ansal Crown Infrabuild Pvt. Ltd. & Ors.
Civil Appeal No(S). 4480-4481 of 2023 with Civil Appeal No(S). 4247 of 2023-Decided on 17-1-2024
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