Effect of application
Section 124 of the Insolvency and Bankruptcy Code, 2016 deals with effect of application. When an application is filed under section 122 or section 123,— (a) an interim-moratorium shall commence on the date of the making of the application on all actions against the properties of the debtor in respect of his debts and such moratorium shall cease to have effect on the bankruptcy commencem The Act was enacted on 28 May 2016.
(1) When an application is filed under section 122 or section 123,—
(a) an interim-moratorium shall commence on the date of the making of the application on all actions against the properties of the debtor in respect of his debts and such moratorium shall cease to have effect on the bankruptcy commencement date; and
(b) during the interim-moratorium period—
(i) any pending legal action or legal proceeding against any property of the debtor in respect of any of his debts shall be deemed to have been stayed;
(ii) the creditors of the debtor shall not be entitled to initiate any legal action or legal proceedings against any property of the debtor in respect of any of his debts.
(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 making of the application.
(3) The provisions of this section shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
Section 124, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Cross-references
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Questions about Section 124
What does Section 124 of the Insolvency and Bankruptcy Code deal with?
Section 124 of the Insolvency and Bankruptcy Code is headed "Effect of application". When an application is filed under section 122 or section 123,— (a) an interim-moratorium shall commence on the date of the making of the application on all actions against the properties of the debtor in respect of his debts and such moratorium shall cease to have effect on the bankruptcy commencem
How do I find court cases under Section 124 of the Insolvency and Bankruptcy Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Insolvency and Bankruptcy Code 124, section 124 Insolvency and Bankruptcy Code, section 124 of the Insolvency and Bankruptcy Code. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 124 of the Insolvency and Bankruptcy Code, and has it changed?
Its own text turns on section 122 (Application by debtor), section 123 (Application by creditor), so none of them can safely be read on its own.
When was Section 124 of the Insolvency and Bankruptcy Code enacted?
Section 124 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 124, was enacted on 28 May 2016 as Act 31 of 2016. It is in force as at the date shown on this page.
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Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 21 Oct 2026. This page is not a substitute for legal advice.