96. (1) When an application is filed under section 94 or section 95-
(a) an interim-moratorium shall commence on the date of the application in
relation to all the debts and shall cease to have effect on the date of
admission of such application; and
(b) during the interim-moratorium period-
(i) any legal action or proceeding pending in respect of any debt shall be
deemed to have been stayed; and
(ii) the creditors of the debtor shall not initiate any legal action or
proceedings in respect of any debt.
(2) Where the application has been made in relation to a firm, the
interim-moratorium under sub-section (1) shall operate against all the
partners of the firm as on the date of the application.
(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.