Fresh Insolvency To Be Suspended For Six Months Under The IBC

Since the outbreak of the COVID-19 pandemic in India, there has been speculation in relation to whether the government of India would alter the operation of the Insolvency and Bankruptcy Code, 2016 (IBC). On March 24, 2020, the Union Finance Minister announced that the central government is considering the suspension of Sections 7, 9 and 10 of the IBC which deals with initiation of insolvency proceedings against corporate debtors by financial and operational creditors, in an attempt to prevent companies from being forced into insolvency proceedings for defaults owing to the pandemic.

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