Q: State moratorium of insolvency process ?

Ans: As stipulated above, upon the commencement of insolvency resolution proceedings, a 'moratorium' is imposed upon the operations of the Corporate Debtor, in terms of Section 14 of the IBC, which prohibits all recovery actions that may be taken against the Corporate Debtor.
Not only does the moratorium apply to the institution of fresh actions, it further prohibits the continuation of pending suits or proceedings against the Corporate Debtor (including execution proceedings). Additionally, the transfer, alienation or disposal of assets of the Corporate Debtor is also barred. To fully achieve the same, any action or enforcement of security interest under the SARFAESI Act is suspended. The moratorium shall cease to have effect on the date on which the resolution process is approved, or on the date of passing of order as to liquidation of the corporate debtor.

The full-form of Sarfaesi Act, 2002 is Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002. 

Keywords used: 
Alienation : अलगाव की भावना,  हस्तांतरण

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