High Courts cannot use power u/s 482 CrPC to undermine the statutory dictate u/Ss 14 and 17 IBC A Supreme Court bench of Justice UU Lalit and Justice KM Joseph held on Thursday, 22.04.2021 that the inherent powers of High Courts under Section 482 of the Criminal Procedure Code cannot be used to undermine the statutory dictate under Sections 14 and 17 of the Insolvency and Bankruptcy Code (Sandeep Khaitan, Resolution Professional v. JSVM Plywood Industries). High Courts cannot overlook the statutory limits on their power, under Section 482, which have been put in place to “secure the ends of justice.” The Court reiterated that the effect of the moratorium (u/s 14) is the prohibition of transferring encumbering, alienating or disposing of by the Corporate Debtor of any of its asset. From date of admission of insolvency application and appointment of Interim Resolution Professional (IRP), the IRP shall manage the affairs of the Corporate Debtor. The powers of Board of Directors or partners of the Corporate Debtor shall be suspended; these powers would then vest in the IRP (u/s 17). Reddy & Reddy Law Firm has a forte in handling matters related to banking-finance. They have an experienced team of lawyers ready to assist in all your disputes.