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Union Cabinet Opts To Cancel The Suspend Insolvency Proceedings Till 6 Months
By: Tupaki Desk | 23 April 2020 1:47 PM GMT
The lockdown which was imposed in India following the rise of the positive cases of COVID-19 has left many industries and companies in a deep loss. The Central government has decided to lend a helping hand to the companies.
Following this, the Union Cabinet cleared the proposal put forth by the Corporate Affairs Ministry which states to grant a big relief for the companies from the insolvency for the coming six months by amending the Insolvency and Bankruptcy Code (IBC), 2016
Though the Union Cabinet has cleared the proposal, the President is yet to give a nod to amend the clause for Section 10A, which will, in turn, quashes Sections 7,9, and 10 for six months or until the further information.
"We are raising the default threshold to prevent triggering of IBC for MSMEs. If the situation does not improve until April 30, we can suspend Section 7,9 and 10 for six months," Union Finance Minister Nirmala Sitharaman said.
Following this, the Union Cabinet cleared the proposal put forth by the Corporate Affairs Ministry which states to grant a big relief for the companies from the insolvency for the coming six months by amending the Insolvency and Bankruptcy Code (IBC), 2016
Though the Union Cabinet has cleared the proposal, the President is yet to give a nod to amend the clause for Section 10A, which will, in turn, quashes Sections 7,9, and 10 for six months or until the further information.
"We are raising the default threshold to prevent triggering of IBC for MSMEs. If the situation does not improve until April 30, we can suspend Section 7,9 and 10 for six months," Union Finance Minister Nirmala Sitharaman said.
