The moratorium shall not apply to a surety in a contract of guarantee to a corporate debtor. Do you agree with this? What is the effect of the order of moratorium? What are the purposes served by the declaration of morat

Yes, the moratorium shall not apply to a surety in a contract of guarantee to a corporate debtor. Effect of order of moratorium The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process. Provided that where at any time during the corporate insolvency resolution process period, if the NCLT approves the resolution plan under section 31(1) of the Insolvency and Bankruptcy Code, 2016 (the Code) or passes an order for liquidation of corporate debtor under section 33 of the Code , the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be. [ Section 14(4) ]. Declaration of moratorium serves the following purposes: Ensures that multiple proceedings are not taking place simultaneously and thus avoids the possibility of potentially conflicting outcomes of related proceedings. Keeps the corporate debtor's assets together during the insolvency resolution process and facilitates orderly completion of the process, Ensures that the company may continue as a going concern while the creditors assess the options for resolution of default. Prohibition on disposal of the corporate debtor's assets ensure that the corporate debtor/management does not transfer its assets, thereby stripping the corporate debtor of value during the corporate insolvency resolution process.