Execution proceedings against Jaideep Singh halted in light of the Insolvency and Bankruptcy Code moratorium order.
In a significant development, the Madhya Pradesh High Court in Jabalpur has issued a stay on the execution of an arrest warrant against Jaideep Singh, following a moratorium order by the National Company Law Tribunal (NCLT). The judgment was delivered on April 21, 2026, by Justice Sanjeev S. Kalgaonkar, in the matter of WP No. 13632 of 2026.
The legal proceedings stem from the orders passed by the Sub-Divisional Officer (Revenue), Tehsil - Kolar, District - Bhopal on March 18, 2026, and April 9, 2026, which directed the execution of a Recovery Certificate (RRC) against the petitioner, Jaideep Singh. However, the petitioner contended that these actions contravened the moratorium order issued by the NCLT's Indore Special Bench on July 28, 2025, under Section 14 of the Insolvency and Bankruptcy Code, 2016.
The NCLT order prohibited the institution or continuation of any suits or proceedings against the corporate debtor, including the execution of judgments, decrees, or orders. Despite this, the respondents pursued the execution of the RRC, prompting Singh to file a representation before the Sub-Divisional Officer on April 6, 2026. Instead of acknowledging the NCLT's moratorium, the Sub-Divisional Officer directed the Tahsildar, Kolar, to execute the RRC and issued an arrest warrant for Singh.
Advocate Akshat Agrawal, representing Singh via video conferencing, argued that the Sub-Divisional Officer's order lacked cogent reasoning and disregarded the NCLT's moratorium. On the other hand, A.S. Baghel, the Government Advocate for the State, maintained that the Tahsildar's actions were in compliance with the M.P. Land Revenue Code and the directive from the Real Estate Regulatory Authority (RERA) favoring flat buyers.
Justice Kalgaonkar, upon hearing both parties, acknowledged the potential prejudice faced by Singh if the arrest warrant were executed despite the NCLT's moratorium order. Consequently, the High Court stayed the execution of the arrest warrant and the associated recovery proceedings until the next hearing date, emphasizing the need to consider the implications of the Insolvency and Bankruptcy Code proceedings and the NCLT order thoroughly.
The case is set for listing upon receipt of the service report, and further proceedings will explore the interplay between the recovery actions under the M.P. Land Revenue Code and the moratorium under the Insolvency and Bankruptcy Code.
Bottom line:-
Execution of arrest warrant for recovery of dues stayed in light of the moratorium order passed by NCLT under Section 14 of the Insolvency and Bankruptcy Code, 2016.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Section 14
