# The Insolvency and Bankruptcy Code, 2016, Section 96: Interim moratorium

- Act: The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016)
- Ministry: Ministry of Corporate Affairs
- Source URL: https://indiacode.ecourtsindia.com/insolvency-bankruptcy-code-2016/section/96/

## Text

(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.

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