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Home » KNOWLEDGE » Whether the proceedings u/s 27 of the Consumer Protection Act can be initiated against a company in respect of whom a moratorium in respect of Section 14 of the IBC has been declared?

Whether the proceedings u/s 27 of the Consumer Protection Act can be initiated against a company in respect of whom a moratorium in respect of Section 14 of the IBC has been declared?

The proceedings under Section 27 of the Consumer Protection Act can be instituted and continued against a corporate debtor, which has failed or omitted to comply with an order passed by a Consumer Forum and in respect of whom a moratorium under Section 14 of the Insolvency and Bankruptcy Code is declared by the Adjudicating Authority;

The proceedings under Section 27 of the Consumer Protection Act can be instituted and continued against the persons in-charge of and responsible to the corporate debtor for the conduct of its business as well as against a person referred in Para (13) hereinabove, even after a moratorium under Section 14 of the Insolvency and Bankruptcy Code is declared by the Adjudicating Authority against the corporate debtor.

(Lotus Panache Welfare Association Vs. M/s Granite Gate Properties Pvt. Ltd. & Ors.)