(1) When an application is filed under section 94 or section 95-
(a) an interim-moratorium shall commence on the date of the application in relation to all the debts and shall cease to have effect on the date of admission of such application; and
(b) during the interim-moratorium period-
(i) any legal action or proceeding pending in respect of any debt shall be deemed to have been stayed; and
(ii) the creditors of the debtor shall not initiate any legal action or proceedings in respect of any debt.
(2) Where the application has been made in relation to a firm, the interim-moratorium under sub-section (1) shall operate against all the partners of the firm as on the date of the application.
(3) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
Insolvency and Bankruptcy Code 2016
Section 91 Revocation of order admitting application
Section 93 Standard of conduct
Section 94 Application by debtor to initiate insolvency resolution process
Section 95 Application by creditor to initiate insolvency resolution process
Section 97 Appointment of resolution professional
Section 98 Replacement of resolution professional