101. (1) When the application is admitted under section 100, a moratorium
shall commence in relation to all the debts and shall cease to have effect
at the end of the period of one hundred and eighty days beginning with the
date of admission of the application or on the date the Adjudicating
Authority passes an order on the repayment plan under section 114, whichever
is earlier.
(2) During the moratorium period-
(a) any pending legal action or proceeding in respect of any debt shall be
deemed to have been stayed;
(b) the creditors shall not initiate any legal action or legal proceedings
in respect of any debt; and
(c) the debtor shall not transfer, alienate, encumber or dispose of any of
his assets or his legal rights or beneficial interest therein;
(3) Where an order admitting the application under section 96 has been made
in relation to a firm, the moratorium under sub-section (1) shall operate
against all the partners of the firm.
(4) The provisions of this section shall not apply to such transactions as
may be notified by the Central Government in consultation with any financial
sector regulator.