further submitted that Section 14(3) (b) of the IBC provides that
Moratorium will not be applicable 'to a surety in a contract ... interest' as
defined under section 3(31) of the IBC. Therefore, during the moratorium the
bank guarantee cannot be invoked as the same
force. The
inconsistency between the IBC and the SAFAESI Act is that
when under Section 101, the IBC provides moratorium, the
provision of SARFAESI ... Apex Court differentiated between moratorium
mentioned u/s 14 of the code and interim moratorium and
moratorium mentioned under sec 96 &101 respectively (under
following was observed:
"36. Section 14 of the IBC prescribes a moratorium on the
initiation of CIRP proceedings and its effects ... inconsistency of the Customs Act vis-à-
vis the IBC during the moratorium period. In the present case, the
demand notice dated 11.07.2019 was issued
following was observed:
"36. Section 14 of the IBC prescribes a moratorium on the
initiation of CIRP proceedings and its effects ... inconsistency of the Customs Act vis-à-
vis the IBC during the moratorium period. In the present case, the
demand notice dated 11.07.2019 was issued
following was observed:
"36. Section 14 of the IBC prescribes a moratorium on the
initiation of CIRP proceedings and its effects ... inconsistency of the Customs Act vis-à-
vis the IBC during the moratorium period. In the present case, the
demand notice dated 11.07.2019 was issued
inconsistency between the IBC and PMLA
must be resolved in favour of the IBC, especially in the context of moratorium
and resolution.
12. The Counsel ... legally untenable. The moratorium under IBC is designed to preserve the
economic value of the Corporate Debtor's bona fide assets for resolution
moratorium.
Further when we go deeper into the moratorium provision, we find that in
terms of Section 14(1)(b) of IBC, once moratorium ... moratorium which precludes any such recovery, the cheques cannot be
encashed after moratorium starts. Since no such arrangement is envisaged in
the IBC
Thus, interim moratorium under Section 96 operates in respect of
debt only. The Interim Moratorium u/s 96 of IBC commences upon filing
of application ... IBC bestows on IBC the priority over
other laws. Section 238 of IBC provides that the provisions of the IBC shall have
effect, notwithstanding anything
Thus, interim moratorium under Section 96 operates in respect of
debt only. The Interim Moratorium u/s 96 of IBC commences upon filing
of application ... IBC bestows on IBC the priority over
other laws. Section 238 of IBC provides that the provisions of the IBC shall have
effect, notwithstanding anything
parties, the Adjudicating Authority
admitted the Application and imposed moratorium under Section 14
of IBC. In the order at paragraph-10, sub-paragraph ... strictly abide by Section 14 of IBC. For beneficial reference, Section 14
of IBC is extracted hereunder:
14. Moratorium. -(1) Subject to provisions
