A company undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016 has a pending civil suit filed by a creditor for recovery of dues. On admission of the application, the moratorium under s.14:

Section 14 of the Insolvency and Bankruptcy Code 2016 declares that on the insolvency commencement date a moratorium takes effect. The moratorium prohibits the institution of suits or continuation of pending suits or proceedings against the corporate debtor, before courts, tribunals or authorities; any action to foreclose, recover or enforce any security interest created by the corporate debtor over its property, including action under the SARFAESI Act; the recovery of any property by an owner or lessor where the corporate debtor is in possession; and any transfer, encumbrance or disposal of the assets of the corporate debtor. It applies to creditors of every class and subsists until approval of a plan or commencement of liquidation under s.14(4). Essential goods and services must continue to be supplied. Pending recovery suits are therefore statutorily stayed.