The interim moratorium u/s 96 of the Insolvency and Bankruptcy ...

Interim Moratorium Under IBC Section 96 Limits Creditor Actions to Specific Debt, Allows Auction of Separate Firm Assets.

October 17, 2024

Case Laws IBC AT

The interim moratorium u/s 96 of the Insolvency and Bankruptcy Code (IBC) applies only to the specific debt for which Section 95 proceedings have been initiated against a personal guarantor. It does not extend to other debts or properties of the personal guarantor or entities they are associated with. The moratorium prohibits other creditors from initiating legal action regarding the specific debt, but does not bar creditors from enforcing their rights against separate properties or entities. The IBC provisions take precedence over other laws u/s 238. In this case, the moratorium covers only the personal guarantee and does not restrain the creditor from auctioning partnership firm assets, as the firm is a separate entity from the personal guarantor. The appeal against allowing the auction was dismissed.

View Source

← Previous Next →

The interim moratorium u/s 96 of the Insolvency and Bankruptcy ...

Interim Moratorium Under IBC Section 96 Limits Creditor Actions to Specific Debt, Allows Auction of Separate Firm Assets.

October 17, 2024

Case Laws IBC AT

You may also like:

From perusal of Section 96(1)(b) of IBC, 2016, interim moratorium restrains ongoing or fresh legal action or proceeding regarding debt pertaining to personal guarantor,...

CIRP - scope of interim moratorium - application to co-guarantors - the effect of the interim moratorium is only in respect of the debts of a particular debtor. By no...

The creditors of the Personal Guarantors who are unable to file an application due to enforcement of moratorium under Section 96 can very well avail the benefit of...

Section 53(1) of the Insolvency and Bankruptcy Code (IBC) provides for the order of priority in the distribution of liquidation assets. Financial debts owed to unsecured...

Challenge to DRT order allowing sale of mortgaged property below reserve price. Unsecured creditor treated as secured creditor, prioritized over original secured...

The NCLAT upheld the admission of the Section 7 application filed by the Financial Creditor (Respondent No.1) for initiating CIRP against the Corporate Debtor. It held...

Non-paid dues of Sales Tax department do not constitute a first charge over property. The first charge belongs to Secured Creditors or the State/Central Government...

CIRP in progress - moratorium in effect - recovery of dues from NPA - It is claimed that since the moratorium under Section 14 of the IBC has ceased to subsist after the...

Admission of a Section 7 application under the Insolvency and Bankruptcy Code, 2016, concerning the classification of a debt as a Financial Debt within the meaning of...

HC held that secured creditor's rights take precedence over government tax dues, affirming a fundamental banking law principle. The court validated the auction sale of...

Initiation of CIRP - the Financial Creditor is trying to recover his dues through various legal actions which was being contested by the Corporate Debtor at every stage....

The Resolution Plan excludes personal guarantors, limiting the assignment of debt and security interests to the corporate debtor only. Consequently, the assignee NBFC...

Effect of interim moratorium - Dishonor of Cheque - ongoing CIRP proceedings - this court would have to interpret the terms “all the debts” and “any legal action or...

Separate BSDA limit for Debt Securities

The circular allows mutual funds greater flexibility to participate in credit default swaps (CDS), enabling them to buy and sell CDS with adequate risk management....

Quick Updates: