Effect of admission of application
Section 85 of the Insolvency and Bankruptcy Code, 2016 deals with effect of admission of application. On the date of admission of the application, the moratorium period shall commence in respect of all the debts. The Act was enacted on 28 May 2016.
(1) On the date of admission of the application, the moratorium period shall commence in respect of all the debts.
(2) During the moratorium period--
(a) any pending legal action or legal proceeding in respect of any debt shall be deemed to have been stayed; and
(b) subject to the provisions of section 86, the creditors shall not initiate any legal action or proceedings in respect of any debt.
(3) During the moratorium period, the debtor shall--
(a) not act as a director of any company, or directly or indirectly take part in or be concerned in the promotion, formation or management of a company;
(b) not dispose of or alienate any of his assets;
(c) inform his business partners that he is undergoing a fresh start process;
(d) be required to inform prior to entering into any financial or commercial transaction of such value as may be notified by the Central Government, either individually or jointly, that he is undergoing a fresh start process;
(e) disclose the name under which he enters into business transactions, if it is different from the name in the application admitted under section 84;
(f) not travel outside India except with the permission of the Adjudicating Authority.
(4) The moratorium ceases to have effect at the end of the period of one hundred and eighty days beginning with the date of admission unless the order admitting the application is revoked under sub-section (2) of section 91.
Section 85, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Cross-references
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Questions about Section 85
What does Section 85 of the Insolvency and Bankruptcy Code deal with?
Section 85 of the Insolvency and Bankruptcy Code is headed "Effect of admission of application". On the date of admission of the application, the moratorium period shall commence in respect of all the debts.
How do I find court cases under Section 85 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 85, section 85 Insolvency and Bankruptcy Code, section 85 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 85 of the Insolvency and Bankruptcy Code, and has it changed?
Its own text turns on section 84 (Admission or rejection of application by Adjudicating Authority), section 86 (Objections by creditor and their examination by resolution professional), section 91 (Revocation of order admitting application), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.
When was Section 85 of the Insolvency and Bankruptcy Code enacted?
Section 85 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 85, 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 19 Oct 2026. This page is not a substitute for legal advice.