New Delhi: The government has exempted corporate debtors’ production and revenue-sharing contracts, exploration licences and mining leases under the Oilfields (Regulation and Development) Act from moratorium under the Insolvency and Bankruptcy Code (IBC).
This effectively means that the government can cancel such contracts or permits with insolvent firms in the petroleum sector even when bankruptcy proceedings are going on against them, experts said.
According to the IBC rules, once moratorium is declared by the adjudicating authority under Section 14 upon the commencement of insolvency, any permit, registration, concession, clearance or a similar grant or right (of the stressed firm) provided by any authority under any other law wouldn’…
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