Question

Under the Insolvency and Bankruptcy Code, 2016, which of the following correctly describes the "moratorium" declared under Section 14 during the Corporate Insolvency Resolution Process (CIR

  • P ?
A It prohibits only financial creditors from filing suits or continuing legal proceedings against the corporate debtor, while operational creditors may still proceed
B It prohibits institution of suits or continuation of pending suits or proceedings against the corporate debtor, transferring or disposing of its assets, and enforcement of any security interest created by the corporate debtor, and remains in force till the completion of CIRP
C It suspends only the board of directors of the corporate debtor and transfers management to the Resolution Professional, without placing any restriction on legal proceedings by creditors
D It prohibits all transactions including payment of employee salaries and day-to-day operational expenses during the insolvency resolution period
Practice Next

Hey! Ask a query