As part of the last tranche of announcements under the Aatma Nirbhar Bharat Abhiyan, on 17 May 2020, the Finance Minister announced certain measures related to the Insolvency and Bankruptcy Code, 2016 (“IBC”) to enhance ease of doing business.
The measures announced include:
Suspension of fresh initiation of proceedings under the IBC for up to one year: The Finance Minister reiterated the Government’s intention to suspend fresh initiation of insolvency proceedings under the IBC for a period of up to one year. This is intended to ensure that businesses are not pushed into the insolvency resolution proceedings prematurely during a period of macro-economic stress, and appears to be complementary to RBI’s announcement permitting banks to grant moratoria on repayment of debts for a fixed period. This measure is also intended to help ‘flatten the bankruptcy curve’ so that institutional infrastructure, particularly the National Company Law Tribunal is not overwhelmed with fresh cases.
The Bar Council of India does not permit solicitation of work and advertising by legal practitioners and advocates. By accessing the Shardul Amarchand Mangaldas & Co. website (our website), the user acknowledges that:
The user wishes to gain more information about us for his/her information and use. He/She also acknowledges that there has been no attempt by us to advertise or solicit work.
Any information obtained or downloaded by the user from our website does not lead to the creation of the client – attorney relationship between the Firm and the user.
None of the information contained in our website amounts to any form of legal opinion or legal advice.
All information contained in our website is the intellectual property of the Firm.