INSOLVENCY AND BANKRUPTCY CODE, SECTION 14 TO 16

Section 14 Moratorium

INSOLVENCY AND BANKRUPTCY CODE SECTION 14 MORATORIUM

NCLT shall by order declare moratorium for prohibiting all the following namely :

• Institution of suits or any bodies doers not suits or  proceeding against corporate debtors  including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority within 180 days under corporate insolvency resolution process.

• Corporate debtors does not transferring , encumbering, alienating or disposing off of any of its assets, any legal right or beneficial interest under the CIRP. 

• Corporate debtors does not transfers any assets or enforce any security interest in respect of its property including any action under securitization and reconstruction of financial assets and enforcement of security interest act,2002.

• If property is occupied or possession by corporate debtors then recovery of any property by an owner or lessor.

• Essential goods or service provide to corporate debtors during the moratorium period.

SECTION 14 CHART

Section 15  Public announcement of corporate                    insolvency resolution process.

INSOLVENCY AND BANKRUPTCY CODE SECTION 15 

 Public announcement of corporate insolvency resolution process

NCLT is appointed IRP and IRP is within 3 days from the date of appointment to provided a public announcement.

1. Name & Address of the corporate debtors under CIRP.
2. Name of the authority of financial creditors is incorporated or registred.
3. Last date for submission of claims.
4. IRP vested in the management of the corporate debtors and its responsible for receing a claims.
5. Penalties for misleading claims.
6. CIRP shall be close within 180 days from the date of admission of the application u/s 7,9 or section 10, as the case may be.

SECTION 15 CHART

Section 16 Appointment and tenure of interim resolution professional.

INSOLVENCY AND BANKRUPTCY CODE SECTION 16 Appointment and tenure of interim resolution professional

NCLT shall appoint an IRP within 14 days from the Insolvency commencement date.

Application is made by financial creditors or corporate debtors for CIRP.

RP as proposed respectively in the application under section 7 or section 10 shall be appointed as the IRP, if no disciplinary proceedings are pending against him.

Operational creditors is made an appliocation for CIRP.

1. No proposal for IRP is made then NCLT shall make a reference to the board ( IBBI) for the recommendation of an IP who acts as an IRP.
2. A proposal for an RP as proposed shall be appointed as the IRP, if no disciplinary proceeding are pending against him.

The IBBI has recommended IP acts as IRP within 10 days from the date of receipts of reference from the NCLT.

SECTION 16 CHART