Hon’ble Supreme Court of India in the matter Saranga Anilkumar Aggarwal v/s Bhavesh Dhirajlal Sheth & Ors held that appellant cannot invoke insolvency proceedings as a shield to evade statutory liabilities. The objective of the IBC is to provide a mechanism for resolving financial distress, not to nullify obligations arising under regulatory statutes.
Hon’ble Supreme Court of India held that penalties imposed by National Consumer Dispute Redressal Commission (NCDRC) in the complaint of homebuyers are regulatory in nature and do not constitute “debt” under the IBC. The moratorium under Section 96 of the IBC does not extend to regulatory penalties imposed for non-compliance with consumer protection laws.
The appeal is accordingly dismissed, and the appellant is directed to comply with the penalties imposed by the NCDRC within a period of eight weeks from the date of this judgment.
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