Headnote
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These two Company Appeals under the Insolvency and Bankruptcy Code, 2016 arose from orders passed by the National Company Law Tribunal, Mumbai Bench, directing BSE Limited to vacate debit freezes imposed on Demat accounts of Corporate Debtors undergoing Corporate Insolvency Resolution Process (CIRP). The common question involved was whether BSE, as a stock exchange, could maintain a debit freeze on Demat accounts of a Corporate Debtor on the ground of non-payment of annual listing fees, after commencement of CIRP and vesting of management in the Resolution Professional.
The Appellant-BSE contended that the debit freeze was imposed pursuant to its regulatory circulars and the listing agreement for non-payment of annual listing fees by the respective listed companies, and that such action was within its powers as a market infrastructure institution. The Respondent Resolution Professionals argued that upon commencement of CIRP, all assets of the Corporate Debtor, including securities held in Demat accounts, vest under the control of the Resolution Professional, and any freeze or encumbrance thereon without the leave of the Adjudicating Authority would violate the moratorium under Section 14 of the IBC.
The National Company Law Appellate Tribunal, after hearing both appeals together on the common legal issue, disposed of them by a common judgment, examining the interplay between the rights and regulatory powers of stock exchanges and the statutory moratorium and asset-control provisions under the Insolvency and Bankruptcy Code, 2016, particularly with respect to Demat accounts and securities of Corporate Debtors held with Depository Participants.
Catchwords:
Insolvency and Bankruptcy Code
Corporate Insolvency Resolution Process
CIRP
moratorium
Demat account
debit freeze
BSE
stock exchange
listing fee
listing agreement
Resolution Professional
Interim Resolution Professional
securities
depository
SEBI
Section 14 IBC
asset control
NCLT
NCLAT
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Full Judgment Text
```json
{
"title": "BSE Limited vs Mrudula Brodie & Ors.",
"case_number": "Company Appeal (AT) (Ins) No. 1786 of 2025 and Company Appeal (AT) (Ins) No. 1862 of 2024",
"side": "company",
"date_of_judgment": "2026-03-24",
"bench": "Justice Mohd. Faiz Alam Khan, Member (Judicial)",
"reportable": false,
"parties_petitioner": "BSE Limited",
"parties_respondent": "Mrudula Brodie & Ors.",
"result": "disposed",
"headnote": "These two Company Appeals under the Insolvency and Bankruptcy Code, 2016 arose from orders passed by the National Company Law Tribunal, Mumbai Bench, directing
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