Page 77 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] NATIONAL PLYWOOD INDUSTRIES LTD. v. UNION OF INDIA 587
6. Section 14(1) of the Insolvency and Bankruptcy Code, 2016 is as fol-
lows :
“14. Moratorium. - (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 pro-
ceedings against the corporate debtor including execution of
any judgment, decree or order in any court of law, tribunal,
arbitration panel or other authority;
(b) transferring, encumbering, alienating or disposing off by the
corporate debtor any of its assets or any legal right or benefi-
cial interest therein;
(c) any action to foreclose, recover or enforce any security interest
created by the corporate debtor in respect of its property in-
cluding any action under the Securitisation and Reconstruc-
tion of Financial Assets and Enforcement of Security Interest
Act, 2002 (54 of 2002);
(d) the recovery of any property by an owner or lessor where
such property is occupied by or in the possession of the corpo-
rate debtor.”
7. Section 14(1)(a) provides that on the insolvency commencement date,
the adjudicating authority shall by order declare a moratorium for prohibiting,
amongst others, the institution of suits or continuation of the pending suits or
proceeding against the corporate debtor, including execution of any judgment,
decree or order in any court of law, tribunal, arbitration panel or other authority.
8. Section 14(1)(a), amongst others, refers to institution of suits or con-
tinuation of pending suits or proceeding, which also includes execution of any
judgment and decree or order of any court of law, Tribunal, arbitration panel or
other authority. The dominant provision of Section 14(1)(a) being institution of
suits or continuation of pending suits or proceedings, it is not necessary that only
the execution of judgment and decree or order of any court of law, tribunal, arbi-
tration panel or other authority, is prohibited under Section 14(1)(a) - The other
provision as regards the institution of suits or continuation of the pending suits
or proceedings being a provision of Section 14(1)(a), in a plain reading of Section
141(a) would also have to be prohibited.
9. From the order, dated 15-1-2019, it is discernible that the aspect as to
whether a pending proceeding before GST authority is also a proceeding as pro-
vided in Section 14(1)(a) has not been examined by the Commissioner of GST
and consequently the implication thereof i.e. if it is a proceeding whether the or-
der of moratorium would also cover the said proceeding, has also not been
looked into.
10. Accordingly, the order dated 15-11-2019 is hereby set aside and the
matter is remanded back for a fresh consideration by examining the aspect as to
whether the order of moratorium of the National Company Law Tribunal also
covers the proceeding pending before the GST authorities under the GST Act,
2017.
11. The required consideration be made within a period of one month
from the date of receipt of a certified copy of this order.
12. The writ petition stands disposed of.
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GST LAW TIMES  26th March 2020  173