--- title: "IBC MORATORIUM AGAINST COMPANY DOESN’T BAR CONSUMER COMPLAINTS AGAINST PROMOTERS, DIRECTORS: SUPREME COURT " date: 2026-09-26 author: "Ajay KSK" url: https://ksandk.com/newsletter/ibc-moratorium-against-company-doesnt-bar-consumer-complaints-against-promoters-directors-supreme-court/ --- # IBC MORATORIUM AGAINST COMPANY DOESN’T BAR CONSUMER COMPLAINTS AGAINST PROMOTERS, DIRECTORS: SUPREME COURT  Posted On - 26 September, 2026 • By - Ajay KSK ## **SUMMARY:** 2The case concerned homebuyers who had filed a consumer complaint against the developer, its associated company, promoters/directors and landowners for non-delivery of their apartments.  During the pendency of the complaint, insolvency proceedings were initiated against the main developer and a moratorium under Section 14 of the IBC was imposed. The NCDRC consequently stopped the entire consumer complaint.  The Supreme Court held that the moratorium applies only to the corporate debtor. It does not automatically extend to promoters, directors, associated companies or other respondents. Therefore, the consumer complaint could continue against Respondent Nos. 2 to 7.  ## **FACTS:** - The appellants were homebuyers who booked apartments in the Mantri Manyata Energia project, developed by Respondent No. 1, Mantri Technology Constellations Pvt. Ltd.  - Agreements were executed in 2016, under which possession was to be handed over by 31.12.2018.  - Despite substantial payments, possession was not delivered within the agreed time. The homebuyers therefore filed Consumer Complaint No. 13 of 2023 before the NCDRC alleging deficiency in service and unfair trade practices against Respondent Nos. 1 to 7.   - During the pendency of the complaint, the NCLT admitted a Section 9 IBC application on 23.08.2024 against Respondent No. 1 and imposed a Section 14 moratorium.  - The homebuyers then requested the NCDRC to continue the complaint against Respondent Nos. 2 to 7. The NCDRC rejected this request and adjourned the complaint sine die.  ## **ISSUE:** Whether the Section 14 IBC moratorium imposed against the corporate debtor also prevented the consumer complaint from continuing against the other respondents who were not themselves subject to the moratorium. ## **JUDGMENT:** The Supreme Court held that Section 14 moratorium operates only against the corporate debtor. It cannot be extended to other parties unless the law specifically provides for such protection.  The Court relied on decisions including P. Mohanraj v. Shah Brothers Ispat Pvt. Ltd. and Ansal Crown Heights Flat Buyers Association v. Ansal Crown Infrabuild Pvt. Ltd., which recognise that the moratorium does not automatically protect directors, promoters and other persons.   The Court also held that the NCDRC had prematurely assumed that the alleged deficiency was attributable only to Respondent No. 1. Whether Respondent Nos. 2 to 7 were actually liable had to be decided after considering the pleadings and objections. That question could not be closed at the interlocutory stage.  *Last Updated on 25 September, 2026* Get King Stubb & Kasiva’s legal updates in your Google feed[![Add King Stubb & Kasiva as a preferred source on Google](https://ksandk.com/wp-content/uploads/google_preferred_source_badge_light_en@2x.png)](https://www.google.com/preferences/source?q=https://ksandk.com/) --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)