Moratorium

ResBazz

Administrator
In the event that an order admitting the application for insolvency is admitted by the AA, a moratorium in relation to the Guarantor automatically comes into effect in terms of Section 101, unlike under Section 14 wherein the NCLT needs to specifically pass an order declaring moratorium. Section 101 of the Code explicitly provides for a timeline of 180 days, on the expiry of which the moratorium shall cease to have effect unless the AA has passed an order on the repayment plan earlier in which case the moratorium shall end on such date.
 

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