June 19, 2023
Summary of the MCA Notification dated 14/06/2023.
This notification is integrated in our free-to-use website ca2013.com.
Non- applicability of the moratorium to the corporate debtor in the event of specified transactions, arrangements, or agreements
As per Section 14 (1) of the Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority can declare moratorium on the suits, transactions related to assets, any security interest and recovery of property.
However, the Central Government vide Section 13 (3) (a) has the power to exempt any transactions, arrangements or agreements from such moratorium declared by the Adjudicating Authority. Hence, the Central Government vide MCA notification dated 14.06.2023 has stated that the declaration of moratorium by the Adjudicating Authority shall not be applicable to the following–
1. The Production Sharing Contracts, Revenue Sharing Contracts, Exploration Licenses and Mining Leases made under the Oilfields (Regulation and Development) Act, 1948 (53 of 1948) and rules made thereunder; and
2. Any transactions, arrangements, or agreements, including Joint Operating Agreement, connected or ancillary to the transactions, arrangements or agreements referred to in clause (i).
To view the MCA Notification, click here.
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