To facilitate this process and to shield the PG from parallel recovery proceedings during the pendency of the PGIRP, the Code provides for a moratorium under Section 101, i.e., a period during which no fresh legal action in respect of any debt can be initiated against the PG, and any pending action remains stayed.
The structure of this moratorium, however, differs materially from that available to CDs under Section 14 of the Code. Whereas the moratorium under Section 14 subsists for the entire duration of the corporate insolvency resolution process (“CIRP”), the moratorium under Section 101 terminates upon the earlier of:
(a) the expiry of 180 days from the date of the PG’s admission into insolvency, or
(b) the date on which the…