Interim moratorium on debtor property bars debt actions and stays pending proceedings after bankruptcy application. An interim moratorium starts when an application is filed under section 122 or section 123 and remains in force until the bankruptcy commencement date. During this period, pending legal actions against the debtor's property in respect of debts are deemed stayed, and creditors cannot initiate new legal actions or proceedings against such property. If the application relates to a firm, the moratorium applies to all partners. The section excludes notified transactions and applications for a personal guarantor to a corporate debtor.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Interim moratorium on debtor property bars debt actions and stays pending proceedings after bankruptcy application.
An interim moratorium starts when an application is filed under section 122 or section 123 and remains in force until the bankruptcy commencement date. During this period, pending legal actions against the debtor's property in respect of debts are deemed stayed, and creditors cannot initiate new legal actions or proceedings against such property. If the application relates to a firm, the moratorium applies to all partners. The section excludes notified transactions and applications for a personal guarantor to a corporate debtor.
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