Moratorium

A statutory stay ordered by NCLT under Section 14 of IBC upon admission of CIRP application, prohibiting institution of suits, execution of judgments, transfer of assets, and recovery actions against the corporate debtor during CIRP.

Moratorium is governed by the Insolvency and Bankruptcy Code, 2016 and regulated by IBBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.

Moratorium is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with IBC regulatory matters in India.