The main legal point established in the judgment is that the moratorium declared under Section 14 of the IBC, 2016 applies to all judgment debtors, including branch offices, and prohibits the continuation of proceedings against them.

Tarlok Singh Chauhan, J.

Even though various applications like the one filed by the decree holders under Order 21 Rule 37 read with Section 151 CPC (OMP No.354/2016), another application filed by them under Section 21 Rule 41 read with Section 151 CPC (OMP No.355/2016), and an application (OMP No.21/2017) filed by the judgment debtors to withdraw earlier replies filed in OMP Nos. 354/2016 and 355/2016 are pending adjudication, but the judgment debtors would insist that all these applications cannot now be heard in view of two applications moved by them being OMP No.230/2017 whereby permission has been sought to bring on record subsequent events and another application (OMP No.34/2018) for placing on record the order passed by the National Law Company Tribunal (in short, the “NLCT”) whereby not only the petition has been admitted, but even a moratorium has been declared. Support in regard to the contention is sought to be derived from the various provisions of the Insolvency and Bankruptcy Code, 2016 (in short, the “IBC, 2016”), more particularly, Section 14(1)(a) thereof, which reads thus :

14. (1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely:—

(a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority.

2. Prayer/submission made by the learned senior counsel for the judgment debtors is vehemently opposed by the learned senior counsel for the decree holders and it is contended that the applications moved by the decree holders under Order 21 Rule 37 read with Section 151 CPC (OMP No.354/2016) and under Section 21 Rule 41 read with Section 151 CPC (OMP No.355/2016), can only be adjudicated by this Court and mere pendency of the proceedings before the NLCT would not come in way of this court while adjudicating the same, especially when the same are directed not against the corporate debtors but the relief sought therein is against the Directors of judgment debtor No.1-company.

3. For completion of facts and proper understanding of case, it needs to be mentioned that civil suit No.44/2015 as filed by the decree holders was decreed against all the defendants/judgment debtors and they were held entitled for a sum of Rs.42,90,292.36 along with interest at the rate of 18% per annum from the date of filing of the suit till re covery of the decretal amount. Even though the judgment debtors have filed an appeal being OSA No.3/2017, but the same is only directed against the award of interest while the decretal amount has not been disputed. The disputed amount in fact has already been ordered to be released by this court in favour of the decree holders.

4. I have heard learned counsel for the parties and have also gone through the records of the case including the records of civil suit No. 44/2015, out of which present execution petition arises.

5. In order to appreciate the respective contentions of the parties, it would be first necessary to determine the status of the judgment debtors. As per the averments made in para 2 of the plaint, judgment debtor No.1 alone is a company incorporated under the Companies Act having its registered office at Bhubaneshwar, Orissa, whereas all the other judgment debtors are only branch offices of judgment debtor No.1 including judgment debtors No. 5 and 6.

6. Bearing in mind the status of judgment debtor No.1 vis-à-vis judgment debtors, provisions of the IBC, 2016 now need to be referred to.

7. Section 2 of the IBC, 2016 deals with application thereof and vide amendment carried out by way of the Insolvency and Bankruptcy Code (Amendment) Act, 2017 (8 of 2018), the same applies apart from others to the personal guarantors to corporate debtors, individuals and other persons referred to in clause