New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    During the period when moratorium is declared by the

    Adjudicating Authority which of the following is prohibited?
    A Institution of suits or continuation of pending suits or proceedings against the corporate debtor Correct Answer Incorrect Answer
    B Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets Correct Answer Incorrect Answer
    C Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property Correct Answer Incorrect Answer
    D All a b & c Correct Answer Incorrect Answer

    Solution

     Explanation: Section 14-Moratorium- (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 Securitization 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.

    Practice Next