Moratorium under IBC protects corporate debtor from individual enforcement, pausing recovery and asset disposals during CIRP. A moratorium declared on the insolvency commencement date creates a standstill during the CIRP, prohibiting institution or continuation of suits, execution of judgments, and actions to transfer, encumber, alienate or dispose of the corporate debtor's assets, and to foreclose or enforce security interests. Supplies of essential goods and services necessary to preserve the corporate debtor as a going concern shall not be terminated, subject to payment of current dues. Exceptions include transactions notified by the Central Government and proceedings against sureties; the moratorium ends on approval of a resolution plan or an order for liquidation.
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.
Moratorium under IBC protects corporate debtor from individual enforcement, pausing recovery and asset disposals during CIRP.
A moratorium declared on the insolvency commencement date creates a standstill during the CIRP, prohibiting institution or continuation of suits, execution of judgments, and actions to transfer, encumber, alienate or dispose of the corporate debtor's assets, and to foreclose or enforce security interests. Supplies of essential goods and services necessary to preserve the corporate debtor as a going concern shall not be terminated, subject to payment of current dues. Exceptions include transactions notified by the Central Government and proceedings against sureties; the moratorium ends on approval of a resolution plan or an order for liquidation.
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