IBC–SARFAESI–Company Law Interface Master

How CIRP's moratorium interacts with SARFAESI enforcement, DRT recovery proceedings and Companies Act winding-up.

Moratorium overrides SARFAESI action

Once CIRP is admitted, the Section 14 moratorium bars a secured creditor from continuing or initiating SARFAESI enforcement action against the corporate debtor's assets — a secured creditor must instead participate in the CIRP process via the CoC, though it retains its security interest for the Section 53 waterfall if the matter proceeds to liquidation.

Effect on pending winding-up petitions

A Companies Act winding-up petition pending before a court/NCLT is effectively superseded once a CIRP application under the Code is admitted for the same corporate debtor — the Code's overriding-effect provision (Section 238) and the specialised insolvency machinery take precedence over the general winding-up route.

DRT proceedings

DRT recovery certificate proceedings against a corporate debtor are similarly stayed during the CIRP moratorium; DRT retains its role as the primary forum only for personal-guarantor and (once notified) general individual/firm insolvency under Part III, not for the corporate debtor's own CIRP.

Educational summary of the Insolvency and Bankruptcy Code, 2016, its Regulations and case law as understood at review date 2026-07-18. Not a substitute for the official Code/Regulations text, current NCLT/NCLAT/Supreme Court rulings, or professional advice on a specific matter.

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