"Initiation of Corporate Insolvency Resolution Process puts brake on any other legal Proceedings against Corporate Debtor (CD) undergoing CIRP during the process." Offer your views on the statement.

The statement is true. Section 14 of the Insolvency and Bankruptcy Code, 2016 empowers the adjudicating authority to declare moratorium while passing the orders for initiating Corporate Insolvency Resolution Process (CIRP) against Corporate Debtor (CD). On the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely: the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority; transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; 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 effect of moratorium are deferred till conclusion of CIRP. Thus, the statement is true to the extent stated above.