Insolvency and Bankruptcy Code – Complete Analysis with recent issues
From Current Affairs Notes for UPSC » Editorials & In-depths » This topic
There has been an extension of another three month for the suspension of Insolvency and Bankruptcy Code (IBC). Finance Minister Nirmala Sitharaman said that the bankruptcy law will remain in suspension till March 31, 2021 now.
Compelled to help businesses deal with the economic disruptions induced by the coronavirus pandemic and continuous lockdowns, the suspension was initially scheduled to stay in effect for six months from March 25, when Centre enforced a nationwide lockdown to stop the spread of COVID-19. It was then extended for three more months and was expected to end on December 25 this year. Now defaults for an entire year since March 25 will not be subject to insolvency proceedings.
Why in News?
Insolvency and bankruptcy code (IBC) was introduced in 2016 to address the mounting bad loans (NPAs) problem. In this scenario, there are new performanceRelated Posts
If you like this post, please share your feedback in the comments section below so that we will upload more posts like this.
Responses