14. (1) Subject to provisions of sub-sections (2) and (3), on the
insolvency commencement date, the Adjudicating Authority shall by order
declare moratorium for
prohibiting all of the following, namely:-
(a) the institution of suits or continuation of pending suits or proceedings
against the corporate debtor including execution of any judgment, decree or
order in
any court of law, tribunal, arbitration panel or other authority;
(b) transferring, encumbering, alienating or disposing of by the corporate
debtor any of its assets or any legal right or beneficial interest therein;
(c) any action to foreclose, recover or enforce any security interest
created by the corporate debtor in respect of its property including any
action under the
Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002;
(d) the recovery of any property by an owner or lessor where such property
is occupied by or in the possession of the corporate debtor.
(2) The supply of essential goods or services to the corporate debtor as may
be specified shall not be terminated or suspended or interrupted during
moratorium period.
(3) The provisions of sub-section (1) shall not apply to such transactions
as may be notified by the Central Government in consultation with any
financial sector regulator.
(4) The order of moratorium shall have effect from the date of such order
till the completion of the corporate insolvency resolution process:
Provided that where at any time during the corporate insolvency resolution
process period, if the Adjudicating Authority approves the resolution plan
under sub-section (1) of section 31 or passes an order for liquidation of
corporate debtor under section 33, the moratorium shall cease to have effect
from the date of such approval or liquidation order, as the case may be.