MCA Excludes Certain Transactions/Arrangements/Contracts from the Purview of Moratorium Under IBC, 2016

MCA Excludes Certain Transactions/Arrangements/Contracts from the Purview of Moratorium Under IBC, 2016

The Central Government by its Ministry of Corporate Affairs has issued a notification pertaining to the Insolvency and Bankruptcy Code, 2016.

The notification has been published in exercise of the powers conferred by clause (a) of sub-section (3) of section 14 of the Insolvency and Bankruptcy Code, 2016.

The notification specifies that the provisions of Section 14(1) of the Insolvency and Bankruptcy Code, 2016 shall not apply to certain transactions, arrangements, or agreements entered into by corporate debtors.

According to the notification, the prohibition under moratorium period shall not be applicable to the Production Sharing Contracts, Revenue Sharing Contracts, Exploration Licenses, Mining Leases governed by the Oilfields (Regulation and Development) Act, 1948, and related transactions entered by the corporate debtor.

Further, any transactions, arrangements or agreements, including Joint Operating Agreement, connected or ancillary to the above transactions/arrangements or agreements shall also be excluded.