Relief Measures introduced in Insolvency Resolution Process in the country due to outbreak of COVID-19 Pandemic
September, 09th 2020
The outbreak of COVID- 19 pandemic and the subsequent restrictions due to lockdowns have severely affected the wellbeing of economies across the world. It has completely jeopardized everyone’s life and the normal operation of business. Governments in various countries are adopting significant actions to save their people and the business entities from this unparalleled situation.
We all know that the pace with which the Insolvency and Bankruptcy Code is being implemented in the country, it has helped India in improving its ‘ease of doing business’ rankings. However it is imminent that the Proceedings under the Code will be impacted because of the prevailing conditions.
At such difficult times, to safeguard the people, business and all the stakeholders, preemptive actions were undertaken in the country in the insolvency resolution space by Hon’ ble Courts, Ministry of Corporate Affairs, IBBI and RBI to provide assistance and relief to the concerned. The notable amongst those actions were the promulgation of The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 and the increase in minimum threshold to trigger insolvency to help the MSME sector.
In this regard, the Committee on Insolvency & Bankruptcy Code of ICAI has taken the initiative of bringing out this Booklet which provides information on all such Relief Measures introduced in Insolvency Resolution Process in the country due to the outbreak of the pandemic for the benefit of members and other stakeholders.
I compliment the entire Committee and extend my sincere appreciation to CA. Anil Satyanarayan Bhandari, Chairman and CA. Pramod Kumar Boob, Vice- Chairman, Committee on Insolvency & Bankruptcy Code in bringing out this Booklet.