ABC Industries Pvt. Ltd., a small manufacturing company, has defaulted on loan repayments to its financial creditor, Zeal Bank Ltd. However, due to its viability and ongoing operations, Zeal Bank proposes to initiate a P

Section 54E of the Insolvency and Bankruptcy Code, 2016 deals with Declaration of moratorium and public announcement during prepackaged insolvency resolution process. It states that: The Adjudicating Authority shall, on the pre-packaged insolvency commencement date, along with the order of admission under section 54C - declare a moratorium for the purposes referred to in sub-section (1) read with sub-section (3) of section 14, which shall, mutatis mutandis applies, to the proceedings under this Chapter; appoint a resolution professional - as named in the application, if no disciplinary proceeding is pending against him; or based on the recommendation made by the Board, if any disciplinary proceeding is pending against the insolvency professional named in the application. cause a public announcement of the initiation of the prepackaged insolvency resolution process to be made by the resolution professional, in such form and manner as may be specified, immediately after his appointment. (2) The order of moratorium shall have effect from the date of such order till the date on which the prepackaged insolvency resolution process period comes to an end.