A recent National Company Law Tribunal (NCLT) order has sent corporate lawyers and promoters intoatizzy. The NCLT´s Mumbai Bench has asked for the personal properties of promoters to be auctioned off even when the process of insolvency is pending before the insolvency professional. The petition was filed by Schweitzer Systemtek India, invoking the Insolvency and Bankruptcy Code (IBC) with the NCLT, after it defaulted onaloan of Rs 4.5 crore given by Dhanlaxmi Bank. The suit was initiated by the promoter himself against the asset reconstruction company (ARC) after Dhanlaxmi Bank sold the loan to Phoenix ARC. The NCLT Mumbai Bench said the promoters cannot be granted any relaxation under the IBC and appointed an insolvency professional to go ahead with the auction of the property. “This Code of 2016 has prescribed certain limitations, which are inbuilt and must not be over looked. The ´moratorium´ indeed is an effective tool, sometimes being used by the corporate debtor