IBC doesn’t bar Conveyance

The Bombay High Court held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not bar the Competent Authority from granting deemed conveyance under Section 11 of the Maharashtra Ownership Flats Act, 1963 (MOFA). 

The Court ruled that deemed conveyance enforces a statutory obligation owed to flat purchasers and is not a debt recovery mechanism or transfer of the corporate debtor's assets prohibited by the IBC.