The Bombay High Court ruled that the moratorium under Section 14 of the IBC does not prevent deemed conveyance under Section 11 of the MOFA, restoring the society's application related to the matter.
Bombay High Court on Deemed Conveyance and IBC Moratorium
The Bombay High Court has clarified that the moratorium imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC) does not hinder the process of deemed conveyance as outlined in Section 11 of the Maharashtra Ownership of Flats Act (MOFA). This ruling reinstates the society's application on its merits.
The court explained that the objectives of the IBC and MOFA are not in conflict, and thus, the moratorium should not be a barrier to the rights granted under MOFA. The judgment reflects a balanced interpretation of the statutes involved, providing clarity on how these legal frameworks interact.
For practitioners, this decision serves as an important precedent in real estate and insolvency cases, underscoring the ability to proceed with deemed conveyance even amid ongoing insolvency proceedings under the IBC.
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