In response to the COVID-19 pandemic, the government significantly amended Indias Insolvency and Bankruptcy Code, 2016, with the objective of protecting businesses during these volatile times.
In brief, the amendments to the bankruptcy code include an increase in the threshold for initiation of corporate insolvency resolution process to Rs 1 crore and what seems to be a permanent ban on the initiation of proceedings under Sections 7, 9, 10 of the Code for a default arising on or after March 25, 2020 for a period of six months (up to one year as may be notified).
While the time period for calculation of default seems to be pegged at six months (extendable up to a year), there is significant ambiguity with respect to the suspension on ini…
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