The moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC) serves as a critical "calm period," intended to protect the corporate debtor from litigation and asset dissipation during the resolution process. This webinar aims to provide a Critical Examination of Moratorium under IBC by dissecting the evolving legal landscape and the practical challenges faced by creditors and resolution professionals alike. We will explore the fine balance between providing a breathing space for corporate rescue and ensuring that the rights of third parties—such as personal guarantors and lessors—are not unfairly compromised.
Key Discussion Points
- The "Shield" vs. "Sword" Debate: Analyzing whether the moratorium is being used strategically to delay legitimate recovery beyond the intent of the IBC.
- Third-Party Assets: Examining the status of assets not owned by the Corporate Debtor but in its possession (e.g., leased equipment or premises).
- Criminal vs. Civil Proceedings: Understanding the Supreme Court's stance on whether a moratorium stays criminal proceedings under the Negotiable Instruments Act.
- Regulatory Friction: How the moratorium interacts with attachment orders from the Enforcement Directorate (ED) or the Income Tax Department.
- Essential Supplies: The legal obligation to maintain electricity, water, and IT services to keep the Corporate Debtor as a "going concern."
