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2025 DIGILAW 603 (SC)

Mukund Choudhary v. Union Of India

2025-02-14

SANJAY KUMAR, SANJIV KHANNA

body2025
ORDER : 1. We do not find any merit in the present writ petition, which challenges the constitutional vires of Section 101 of the Insolvency and Bankruptcy Code, 2016, which fixes an outer limit of 180 days for operation of the moratorium. 2. This is a case of individual insolvency and not corporate insolvency. The object and purpose of the moratorium in the two situations that is corporate insolvency and individual insolvency, is entirely different. In a case of corporate insolvency, the Corporate Insolvency Resolution Process is to examine whether the corporate debtor can be rehabilitated and revived by taking recourse to resolution plans. The purpose of individual insolvency, on the other hand as noticed below, is different. 3. The writ petition challenging the constitutional validity of Section 101 of the Insolvency and Bankruptcy Code, 2016 is dismissed. 4. It is, however, submitted that if the moratorium period comes to an end, one of the creditors may seek to take a march over the others and that would be contrary to the entire object and purpose of the insolvency regime. 5. Let notice to this limited extent be issued in the civil appeal, returnable in the week commencing 28.04.2025. 6. Notice will be served by all modes, including dasti. 7. The petitioner/appellant, Mukund Choudhary, is given liberty to produce this order before the National Company Law Tribunal for appropriate orders/directions.