• S.Pavan Kalyan

The Interim Moratorium in Section 14 of the Insolvency and Bankruptcy Code (IBC) faces misuse by corporate debtors, delaying payments and legal proceedings, exemplified in Adarsh Jhunjhunwala v. State Bank of India & Anr (2021). The Calcutta High Court stressed its misuse against willful defaulters, subverting the legislation's intent. Section 14 has drawn both praise and criticism; it shields struggling companies from aggressive creditor actions during insolvency, aiding asset protection and fairness. However, its misuse impedes justice. Despite offering a crucial shield, the provision requires vigilance to prevent abuse, ensuring its intended purpose of enabling a viable revival plan without enabling wrongful delay or deliberate default. Nevertheless, its imperfections are evident. The extensive duration of the moratorium, spanning up to 180 days, can protract uncertainty and hinder the resolution process. This has adverse implications for creditors, particularly financial institutions, reliant on punctual repayments. Operational creditors, notably small suppliers, endure hardships in the absence of a clear payment stream, jeopardizing their financial stability. Furthermore, the potential for misuse arises, enabling defaulting promoters to regain control during this period, posing concerns about exploitative practices, and subverting the IBC's primary aim of swift and efficient asset resolution. This research contributes to a nuanced comprehension of the Interim Moratorium's repercussions, guiding policy and practice. It also suggests avenues for future research to refine insolvency frameworks, enhancing both their effectiveness and equity.

Insolvency & Bankruptcy Code, Interim Moratorium, Creditor Behavior, Fraud Detection, operational creditors.

"Critical Analysis of Interim Moratorium Under Section 14 Of IBC, 2016 With Respect to Corporate Debtors", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 4, page no.g645-g654, April-2024, Available :http://www.jetir.org/papers/JETIR2404681.pdf

"Critical Analysis of Interim Moratorium Under Section 14 Of IBC, 2016 With Respect to Corporate Debtors", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 4, page no. ppg645-g654, April-2024, Available at : http://www.jetir.org/papers/JETIR2404681.pdf