"The moratorium under the Insolvency and Bankruptcy Code (IBC) isn't absolute and has exceptions. Specifically, proceedings against personal guarantors, criminal cases involving fraud or misrepresentation, and writ petit

Section 14(1) of the Insolvency and Bankruptcy Code, 2016 imposes a moratorium during the Corporate Insolvency Resolution Process (CIRP) whereas section 14(3) of the Code provides for exceptions where moratorium shall not apply i.e. the provisions of sub-section (1) shall not apply to: such transactions, agreements or other arrangement as may be notified by the Central Government in consultation with any financial sector regulator or any other authority; a surety in a contract of guarantee to a corporate debtor. In exercise of the powers conferred by clause (a) of sub-section (3) of section 14 of the Insolvency and Bankruptcy Code, 2016, the Central Government hereby notifies that the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016, shall not apply to: transactions, arrangements or agreements, under the Convention and the Protocol, relating to aircraft, aircraft engines, airframes and helicopters. (MCA notification dated 3rd October, 2023) where the corporate debtor has entered into any of the following transactions, arrangements or agreements, namely: - the Production Sharing Contracts, Revenue Sharing Contracts, Exploration Licenses and Mining Leases made under the Oilfields (Regulation and Development) Act, 1948 and rules made thereunder; and any transactions, arrangements or agreements, including Joint Operating Agreement, connected or ancillary to the transactions, arrangements or agreements referred to in clause (i) (MCA notification dated 14th June, 2023) Applicability to Personal Guarantor: Yes, Section 14(3)(b) explicitly states that the provisions of moratorium under sub-section (1) shall not apply to a surety in a contract of guarantee to a corporate debtor. This means that the moratorium imposed on the corporate debtor during CIRP does not extend to the personal guarantor of the corporate debtor. Creditors can initiate or continue proceedings against personal guarantors even during the moratorium period of the corporate debtor.