<p>The Central Government has notified the <em>Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 </em>to suspend Sections 7, 9 and 10 of the Insolevncy and Bankruptcy Code, 2016 on account of COVID-19. </p>.<p>The Ordinance has introduced new <strong>Section 10A</strong> to suspend initiation of corporate insolvency resolution process. </p>.<p>In view of the new Section, no new insolvency proceedings can be initiated for defaults arising <strong>on or after March 25, 2020</strong> for a period of six months or such further period, not exceeding one year.</p>.<p>Section 66 of the Code has also been amended and reads as follows:</p>.<p>Last month, as part of the "Aatmanirbhar Bharat" economic package for structural reforms across sectors, Union Finance Minister, Nirmala Sitharaman had announced that COVID-19 related debts shall not be included in the category of default under IBC.</p>.<p>She had also announced that insolvency proceedings shall also remain suspended for upto 1 year, depending on the situation of the pandemic.</p>.Aatmanirbhar Bharat Package: No fresh insolvency proceedings for a year, Covid-19 related debt to be excluded from definition of Default.<p><em>Read the Ordinance:</em></p>
<p>The Central Government has notified the <em>Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 </em>to suspend Sections 7, 9 and 10 of the Insolevncy and Bankruptcy Code, 2016 on account of COVID-19. </p>.<p>The Ordinance has introduced new <strong>Section 10A</strong> to suspend initiation of corporate insolvency resolution process. </p>.<p>In view of the new Section, no new insolvency proceedings can be initiated for defaults arising <strong>on or after March 25, 2020</strong> for a period of six months or such further period, not exceeding one year.</p>.<p>Section 66 of the Code has also been amended and reads as follows:</p>.<p>Last month, as part of the "Aatmanirbhar Bharat" economic package for structural reforms across sectors, Union Finance Minister, Nirmala Sitharaman had announced that COVID-19 related debts shall not be included in the category of default under IBC.</p>.<p>She had also announced that insolvency proceedings shall also remain suspended for upto 1 year, depending on the situation of the pandemic.</p>.Aatmanirbhar Bharat Package: No fresh insolvency proceedings for a year, Covid-19 related debt to be excluded from definition of Default.<p><em>Read the Ordinance:</em></p>
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