Proceedings U/S 37 A Of FEMA Can't Be Continued During Moratorium U/S 33(5) Of IBC: Calcutta High Court

Calcutta High Court held that a provisional seizure order under Section 37A of FEMA cannot be issued during the moratorium period under Section 33(5) of the IBC. The court reiterated the precedence of the insolvency moratorium, which prohibits any action against the corporate debtor during the resolution process, including the issuance of seizure orders under other laws like FEMA. This decision reinforces the protection afforded to companies undergoing insolvency proceedings and clarifies the limitations on enforcement agencies during the moratorium period.