Does the imposition of a moratorium prohibit a financial creditor from appropriating fixed deposits to satisfy pre-insolvency debt?
Introduction India has seen a sharp rise in IBC1 insolvency proceedings amid economic pressures, with creditors aggressively attaching properties, from real estate to fixed deposits to realize debts. This prompts a critical question: Does the imposition of a moratorium prohibit a financial creditor from appropriating fixed deposits to satisfy pre-insolvency debt? Post-CIRP2 admission, Section 14 of the IBC halts such […]
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