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Bankruptcy Laws · Unit 2

Bankruptcy exam question: Explain the moratorium under section 14.

The question (15 marks)

Explain the moratorium under section 14. Does it protect a guarantor of the corporate debtor? (15 marks)

MU Module II, head 2.2.

Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.

It tests Unit 2 · Corporate Insolvency and Liquidation of Bankruptcy Laws.

Authorities you will need

  • Section 14 of the Code
  • Section 60(2) and (3) of the Code
  • Section 31(1), on whom an approved plan binds
  • Section 74, punishing contravention of the moratorium

How an answer is marked

A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.