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This Article is From Sep 19, 2020

Rajya Sabha Passes Amendment In Insolvency And Bankruptcy Code

The Bill mandates that a default on repayments from March 25, the day when a nationwide lockdown began to curb the spread of coronavirus, would not be considered for initiating insolvency proceedings for at least six months.

Rajya Sabha Passes Amendment In Insolvency And Bankruptcy Code
Parliament today passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020
New Delhi:

The Rajya Sabha today passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, whereby fresh insolvency proceedings will not be initiated for at least six months starting from March 25 amid the coronavirus pandemic.

Replying to a debate on the Bill in the House, Finance Minister Nirmala Sitharaman said the intention of the IBC is to keep companies a "going concern" and not liquidate them.

The Bill mandates that a default on repayments from March 25, the day when a nationwide lockdown began to curb the spread of coronavirus, would not be considered for initiating insolvency proceedings for at least six months.

The bill seeks to replace an ordinance brought into effect in this regard in June.
 

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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