Section 96 in Insolvency And Bankruptcy Code, 2016
96. Interimmoratorium.
(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.
