ICAI Handbook On Moratorium Under The Insolvency And Bankruptcy Code, 2016
The Insolvency and Bankruptcy Code, 2016 in India has been in implementation phase over the last four years. Being a unitary codified legislation, it has several distinctive features which are essential to achieve the enshrined mandate of the Code which includes time bound resolution process and maximisation of value of the stressed assets.
One such distinguishing feature under the Code has been the applicability of Moratorium during the insolvency resolution process that prevents any interruption and helps in smooth conduct of the process. It is also referred as the ‘calm period’ which has a fixed time of closure under the Code, and allows the insolvency professional to manage the affairs of the corporate debtor in a conflict free environment; thereby letting both the debtor and the creditors to take care of their respective objectives.