Section 54E
Declaration of moratorium and public announcement during pre-packaged insolvency resolution process.
The Insolvency and Bankruptcy Code, 2016.
About this Act
An Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto.
54E. Declaration of moratorium and public announcement during prepackaged insolvency
resolution process.--(1) The Adjudicating Authority shall, on the pre-packaged insolvency
commencement date, along with the order of admission under section 54C--
(a) declare a moratorium for the purposes referred to in sub-section (1) read with sub-section (3) of section 14, which shall, mutatis mutandis apply, to the proceedings under this Chapter;
(b) appoint a resolution professional--
(i) as named in the application, if no disciplinary proceeding is pending against him; or
(ii) based on the recommendation made by the Board, if any disciplinary proceeding is pending against the insolvency professional named in the application;
(c) cause a public announcement of the initiation of the pre-packaged insolvency resolution process to be made by the resolution professional, in such form and manner as may be specified, immediately after his appointment.
(2) The order of moratorium shall have effect from the date of such order till the date on which the pre-packaged insolvency resolution process period comes to an end.
(a) declare a moratorium for the purposes referred to in sub-section (1) read with sub-section (3) of section 14, which shall, mutatis mutandis apply, to the proceedings under this Chapter;
(b) appoint a resolution professional--
(i) as named in the application, if no disciplinary proceeding is pending against him; or
(ii) based on the recommendation made by the Board, if any disciplinary proceeding is pending against the insolvency professional named in the application;
(c) cause a public announcement of the initiation of the pre-packaged insolvency resolution process to be made by the resolution professional, in such form and manner as may be specified, immediately after his appointment.
(2) The order of moratorium shall have effect from the date of such order till the date on which the pre-packaged insolvency resolution process period comes to an end.