Article Alert- ‘Interim Moratorium under Section 14 of the Insolvency and Bankruptcy Code: An evolving jurisprudence’ published on Mondaq

An article titled, ‘Interim Moratorium under Section 14 of the Insolvency and Bankruptcy Code: An evolving jurisprudence’, co-authored by Partner Designate Gajanand Kirodiwal, and Senior Associate Himanshu Goel, published on Mondaq.

The article examines the emerging jurisprudence around pre-admission interim protection under the IBC, an area where the Code does not expressly provide for a moratorium between the filing and admission of a CIRP application. It traces the evolution of the law through key decisions, including F.M. Hammerle Textiles Limited, NUI Pulp and Paper Industries Pvt. Ltd. v. Roxcel Trading GmbH, and more recent NCLT decisions.

The article also considers the interplay between Rule 11 of the NCLT Rules, 2016 and Section 14 of the IBC, the legislative contrast with Section 96, comparative insolvency regimes, and the Insolvency Law Committee’s recommendation for a statutory framework governing pre-admission interim protection.

The article offers useful insights into how judicial innovation has sought to preserve the assets and value of a corporate debtor during the often-prolonged period preceding admission of a CIRP application, while highlighting the case for legislative intervention.

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