Period Of Moratorium U/S 101 Of IBC Cannot Be Extended Beyond 180 Days: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that extending the moratorium period under Section 101 of the Insolvency and Bankruptcy Code (IBC) is not allowed without sufficient justification. The tribunal emphasized that the moratorium is meant to provide temporary relief during insolvency proceedings but cannot be extended indefinitely. The ruling aims to maintain a balance between debtor relief and creditor rights, ensuring timely resolution of insolvency cases. This decision strengthens the procedural framework of IBC by clarifying the limits of the moratorium period and preventing delays in the resolution process.