RS passes modification in Insolvency and Bankruptcy Code

New Delhi, September 19

The Rajya Sabha on Saturday handed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, whereby recent insolvency proceedings is not going to be initiated for at the least six months ranging from March 25 amid the coronavirus pandemic.

Replying to a debate on the Bill within the House, Finance Minister Nirmala Sitharaman mentioned the intention of the IBC is to maintain corporations a “going concern” and never liquidate them.

The Bill mandates {that a} default on repayments from March 25, the day when a nationwide lockdown started to curb the unfold of coronavirus, wouldn’t be thought-about for initiating insolvency proceedings for at the least six months.

The invoice seeks to interchange an ordinance promulgated on this regard in June. PTI

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