Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020

admin September 18, 2020 Daily Current Affairs

Rajya Sabha passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, which seeks to replace the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020.
This ordinance, which was promulgated on June 5, had prohibited the initiation of insolvency proceedings for defaults arising during the six months from March 25, 2020 (extendable up to one year).
Simply put, no insolvency proceedings can be initiated by either the corporate debtor or any of its creditors for defaults arising during this six-month period beginning March 25.