FEMA Proceedings Cannot be Continued During Moratorium u/s 33(5) of IBC: Calcutta HC

Calcutta High Court held that FEMA proceedings cannot be continued during the moratorium period under Section 33(5) of the IBC. The court ruled that the moratorium, triggered by the initiation of insolvency proceedings, prohibits any actions, including FEMA proceedings, against the corporate debtor. This decision clarifies the interplay between the Insolvency and Bankruptcy Code and the Foreign Exchange Management Act, providing protection to companies undergoing insolvency resolution by preventing parallel legal actions during the moratorium.