The Scope Of Interim Moratorium Under Section 96 Of The Code Is Limited, Clarifies SC

In the recent judgment of Hon'ble Supreme Court ("SC") in Saranga Anilkumar Aggarwal Versus Bhavesh Dhirajlal Sheth & Others.¹, SC dealt with a legal proposition concerning whether execution proceedings under Section 27 of the Consumer Protection Act, 1986 ("CP Act"), can also be stayed during an interim moratorium under Section 96 of Insolvency and Bankruptcy Code, 2016 ("Code")?

The present Appeal was filed by the Appellant who is the developer, being aggrieved by the final judgment and order dated August 10, 2018 passed by National Consumer Disputes Redressal Commission ("NCDRC") in CC/1362/2017 along with other connected matters, wherein the NCDRC allowed the complaints and directed the Appellant to complete construction, obtain the requisite occupancy certificate, hand over possession and imposed 27 penalties on the Appellant for deficiency in service by failing to deliver possession within reasonable time.