NCLAT to decide whether moratorium will continue despite stay on insolvency proceedings

The NCLAT is set to decide whether a moratorium on parallel proceedings or transactions concerning a debt-ridden company will continue despite a stay on an order admitting the company to the Corporate Insolvency Resolution Process (CIRP). This case involves Siti Networks Limited, which was admitted to CIRP by the NCLT in February 2023. However, the NCLAT stayed the order in March 2023, leading to disputes among creditors regarding the adjustment of funds. The NCLT later ruled that the moratorium would continue even if there is a stay on the CIRP admission order. This decision is now under review by the NCLAT, which will examine the implications of maintaining a moratorium during a stay on insolvency proceedings.