The issue in focus concerned the effective date of such an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), to determine when an interim moratorium under Section 96 IBC kicks in. In a July 2 ruling, a coram of Chairperson, Justice (retired) Ashok Bhushan and Technical Member Arun Baroka held that the effective date of such an application is the date on which it is filed, and not the date on which it is registered. However, the Kerala High Court had pined that a moratorium would commence only after an application filed for initiating CIRP is defect-free and complete in all respects, and not necessarily on the date of filing such an application.
