Sunday, March 26th, 2023 05:18:58

Govt suspends operation of Insolvency and Bankruptcy Code by another 3 months to protect companies

Updated: September 25, 2020 11:45 am
The Central government has suspended the operation of the Insolvency and Bankruptcy Code, 2016 (IBC) by another three months in order to protect companies in distress due to the Covid pandemic.

A gazette notification issued in this respect said that the suspension of the section 7, 9 and 10 of the IBC Code initially for six months has been further extended for another three months starting from 25th September.

The Code was earlier suspended for six months from 25 March to help the firms recover from the financial distress due to the global pandemic. During the suspension of IBC codes, these firms are protected from being referred to insolvency proceedings.

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