Insolvency

*IBC*

It was held in *Jas Infrastructure v. CBI [2026] GCtR 266 (Delhi)* that Section 32A of IBC has no direct bearing on Section 14 IBC, which provides for a mandatory moratorium period to the corporate debtor from the insolvency commencement date. Section 32A deals with extinguishment of liability of the corporate debtor, from the date the resolution plan has been approved by the Adjudicating Authority, so that the new management may make a clean break with the past and start on a clean slate. A moratorium provision, on the other hand, does not extinguish any liability, civil or criminal, but only casts a shadow on proceedings already initiated and on proceedings to be initiated, which shadow is lifted when the moratorium period comes to an end. During the moratorium period, institution of new suits or continuation of the pending suits, against the corporate debtor, are temporarily suspended until the completion of the CIRP.