The Rajya Sabha on Saturday passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, whereby fresh insolvency proceedings won’t be initiated for a minimum of six months ranging from Annunciation amid the coronavirus pandemic.
Replying to a debate on the Bill within the House, minister of finance Nirmala Sitharaman said the intention of the IBC is to stay companies a “going concern” and not liquidate them.
The Bill mandates that a default repayments from Annunciation , the day when a nationwide lockdown began to curb the spread of coronavirus, wouldn’t be considered for initiating insolvency proceedings for a minimum of six months.
The bill seeks to exchange an ordinance promulgated during this regard in June.
