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CS Professional · Insolvency and Bankruptcy - Law and Practice · Corporate Insolvency Resolution Process

A moratorium was declared on the pre-packaged insolvency commencement date for Vikram Steels Ltd under section 54E. Until when does the order of moratorium have effect?

The moratorium in a pre-packaged process runs from the date of the order until the pre-packaged insolvency resolution process period comes to an end, as section 54E(2) states. Publication of the announcement or constitution of the committee of creditors does not end it.

  1. AUntil the public announcement is published in newspapers
  2. BUntil the committee of creditors is first constituted
  3. CUntil the date on which the pre-packaged insolvency resolution process period comes to an endCorrect
  4. DUntil the resolution professional files his first report with the Board

Explanation

Section 54E(2) states that the order of moratorium has effect from the date of the order till the date on which the pre-packaged insolvency resolution process period comes to an end. Publication of the announcement or formation of the committee does not end it.

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