Section 14 of IBC does not bar classification of account of CD during pendency of CIRP: NCLT

The NCLT has ruled that Section 14 of the IBC "does not bar the classification of the account of a Corporate Debtor (CD) during the pendency of the CIRP." The tribunal clarified that the moratorium, which is intended to freeze the assets of a corporate debtor, does not prevent a bank or a financial institution from classifying the account as a Non-Performing Asset (NPA). This ruling provides clarity to financial creditors on their ability to continue with their standard accounting practices.