Union Government has promulgated an ordinance to amend Insolvency and Bankruptcy Code (IBC).
About:
Under it, fresh insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) will not be initiated against companies for defaults due to the COVID-19 pandemic.
Default on repayments from 25th of March, the day when the nationwide lockdown began to curb Corona virus infections, will not be considered for initiating insolvency proceedings for a period of six months, which could be extended to one year.
It suspends sections 7,9 and 10 of the IBC for a period of 6 months with an enabling provision allowing for it to be extended upto 1 year.
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