IBBI, NCLAT Delhi Judgement Dated 19/12/2026 – Contract Termination not triggered by insolvency is not barred by Moratorium under section 14 of IBC 

Case of Pradeep Upadhyay vs Bhadohi Industrial Development Authority, NCLAT Delhi Judgement Dated 7th November 2025. The appellate tribunal held that termination of a construction contract based on pre-CIRP breaches, performance deficiencies, and delay in execution is not protected by the moratorium, nor does it fall within the residuary jurisdiction of the NCLT. Where contractual remedies are exercised independent of insolvency, the IBC cannot be invoked to invalidate legitimate termination actions. The ruling restricts misuse of Section 14 to shield pre-existing contractual defaults.

(Link: NCLAT Delhi Judgement Dated 19/12/2025)

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