Retroactive Operation of Section 96(4) IBC: Bombay High Court Rules on Interim Moratorium for Personal Guarantors

sketch of the Bombay High Court
Case
RBL BANK LTD v. STATE OF MAHARASHTRA THROUGH SENIOR INSPECTOR OF POLICE (Bombay High Court, 18-09-2026)
Law
Constitution of India, General Clauses Act, Insolvency and Bankruptcy Code, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

Highlights of the Judgment:

  • Comprehensive examination of whether Section 96(4) of the Insolvency and Bankruptcy Code operates retroactively to pending matters.
  • In-depth analysis of statutory interpretation principles distinguishing prospective, retrospective, and retroactive legislation.
  • Application of the Mischief Rule to curb strategic, abusive delays by debtors in creditor recovery proceedings.
  • Evaluation of whether an interim moratorium constitutes an indefeasible vested right or a transient procedural mechanism.
  • Judicial commentary on the legislative intent behind excluding personal guarantors to corporate debtors from interim moratoria.