Moratorium under insolvency law bars suits, enforcement, and asset depletion while protecting essential supplies and business continuity.

Moratorium under section 14 of the Insolvency and Bankruptcy Code begins on the insolvency commencement date and prohibits suits, proceedings, asset transfers, enforcement of security interests, and recovery of property from the corporate debtor. It also protects licenses, permits, registrations, quotas, concessions, clearances, and similar grants from suspension or termination merely on insolvency, subject to current dues. Essential goods or services, and critical supplies identified by the resolution professional, cannot be terminated, suspended, or interrupted during the moratorium, except in specified non-payment situations. The moratorium continues until completion of the corporate insolvency resolution process, or ends earlier on approval of the resolution plan or liquidation order.

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