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Section 96(4) of the Insolvency and Bankruptcy Code, effective...
Interim moratorium exclusion applies retroactively to pending personal-guarantor insolvency applications, while securitisation restraints require written reasons and hearings.
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Section 96(4) of the Insolvency and Bankruptcy Code, effective 26 May 2026, applies retroactively to pending applications under Sections 94 and 95, ending the interim moratorium for personal guarantors from that date. The pre-admission process is procedural, so no vested right arises in interim protection; retroactive operation addresses misuse of that protection. Interim orders in securitisation proceedings require contemporaneous written reasons addressing prima facie case, balance of convenience and irreparable loss. Oral directions cannot support restoration of secured-asset possession. Restraints on auction completion or sale certificates without hearing auction purchasers breach natural justice; the restoration and auction restraints were set aside.
Section 96(4) of the Insolvency and Bankruptcy Code, effective 26 May 2026, applies retroactively to pending applications under Sections 94 and 95, ending the interim moratorium for personal guarantors from that date. The pre-admission process is procedural, so no vested right arises in interim protection; retroactive operation addresses misuse of that protection. Interim orders in securitisation proceedings require contemporaneous written reasons addressing prima facie case, balance of convenience and irreparable loss. Oral directions cannot support restoration of secured-asset possession. Restraints on auction completion or sale certificates without hearing auction purchasers breach natural justice; the restoration and auction restraints were set aside.
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