Amidst all that is under the retiring mode because of an impending coronavirus crisis and a lockdown, its necessary to flip our pages and retrospect look at Insolvency and Bankruptcy Code, 2016 (‘IBC’) to know the nuances of the law.
The moratorium under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) generally means a period wherein no judicial proceedings for recovery, enforcement of security interest, sale or transfer of assets, or termination of essential contracts can be instituted or continued against the Corporate Debtor.
The purposes of the moratorium include keeping the corporate debtor’s assets together during the insolvency resolution process and facilitating orderly completion of the processes envisaged during the insolvency resolution process and ensuring that the company may continue as a going concern while the creditors take a view on the resolution of default and the moratorium on initiation and continuation of legal proceedings.
But what would it mean largely for the normal populace and their loan paying terms? Their Electronic Clearing Services (ECS) on loans and EMI’s will be debited after three months with interests compiled and no added late fees. It surely serves you right being ready after three months for a great cut in your savings account.
