https://www.taxtmi.com/caselaws?id=399297 During CIRP, once moratorium is declared, the corporate debtor cannot repay one financial creditor in preference to other financial creditors. The insolvency framework is intended to preserve the debtor's assets, maintain a calm period, and keep the company as a going concern. Section 14(1) bars transfer or alienation of assets, legal rights, or beneficial interests during moratorium, and cash in hand or bank balances are treated as liquid assets. Preferential payment to one creditor would therefore be a prohibited transfer, and distribution of cash flows among secured creditors must be worked out within the resolution process. en-us Thu, 04 Jun 2020 00:00:00 +0530 Thu, 08 Oct 2020 11:43:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=399297 During CIRP, once moratorium is declared, the corporate debtor cannot repay one financial creditor in preference to other financial creditors. The insolvency framework is intended to preserve the debtor's assets, maintain a calm period, and keep the company as a going concern. Section 14(1) bars transfer or alienation of assets, legal rights, or beneficial interests during moratorium, and cash in hand or bank balances are treated as liquid assets. Preferential payment to one creditor would therefore be a prohibited transfer, and distribution of cash flows among secured creditors must be worked out within the resolution process. Case-Laws Insolvency and Bankruptcy Thu, 04 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=399297