Section 14: moratorium -EASYLEGALTAX
The moratorium regarding Insolvency and Bankruptcy Code, 2016 ('IBC') implies a period wherein no legal procedures for recovery, enforcement of security interest, sale or transfer of assets, or termination of essential contracts can be established or proceeded against the Corporate Debtor. This brings up a fascinating issue on the issue of the pertinence of the Moratorium to the procedures under Section 138 of the Negotiable Instruments Act, 1891 (NI Act).
Time limit for completion of Insolvency Resolution Process -EasyLegalTax
As per Section 12 of the Insolvency and Bankruptcy code, the whole procedure involved in the Corporate Insolvency Resolution Procedure (CIRP) should be completed within 180 days. However, same can be duly extended up to 90 days. In nutshell, the resolution procedure should be completed within 270 days, failing to which the Adjudicating Authority will initiate Liquidation procedure under Chapter III of the Code.
Corporate Insolvency Resolution Process -EasyLegalTax
After the admission of application for corporate insolvency, submitted to the Adjudicating Authority by the corporate debtor, financial creditor or operational creditor under section 7,9 or 10 of the Insolvency and Bankruptcy Code, 2016 (“I & B Code”), the Corporate Insolvency Resolution Process (“CIRP”) commences.