National Company Law Tribunal (NCLT) has passed order for Commencement of Corporate Insolvency Resolution Process (CIRP) of Dora Travels Ltd., one of its director has approached you to know the effects of "Moratorium" up

On commencement of the CIRP, the adjudicating authority passes an order declaring moratorium for prohibiting all of the following by virtue of section 14 of the Insolvency and Bankruptcy Code, 2016: (a) Institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority (b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein (c) Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under SARFAESI Act, 2002. (d) The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor The order of moratorium shall have effect from the date of order till the completion of CIRP or date of approval of resolution plan or order of liquidation as the case may be.