SC: Under RTE Act, States Cannot Justify Low Teacher Pay by Citing Centre’s Failure to Release Funds  ||  Supreme Court: While a Child’s Welfare is Paramount, It is Not the Sole Factor in Custody Disputes  ||  Supreme Court: High Court Cannot Reject a Plaint While Exercising Jurisdiction under Article 227  ||  SC: Merely Leasing an Apartment Does Not Bar a Flat Buyer’s Consumer Complaint Against the Builder  ||  Delhi HC: Unproven Adultery Allegations Cannot be Used to Deny Interim Maintenance under the DV Act  ||  Bombay HC: Storing Items in a Fridge isn’t Manufacturing and Doesn’t Make Premises a Factory  ||  Kerala HC: Disability Pension is Not Payable if the Condition is Unrelated to Military Service  ||  Supreme Court: Award Valid Even If Passed After Mandate Expiry When Court Extends Time  ||  Jharkhand HC: Regular Bail Plea During Interim Bail is Not Maintainable under Section 483 BNSS  ||  Cal HC: Theft Claims and Public Humiliation Alone Don’t Amount To Abetment of Suicide U/S 306 IPC    

Rajya Sabha passes the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 - (19 Sep 2020)

Insolvency

Rajya Sabha amends IBC by temporarily suspending initiation of Corporate Insolvency Resolution Process. The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 was introduced in Rajya Sabha on September 15, 2020. The Second Amendment seeks to replace the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 issued in June. In the light of the extraordinary economic situation caused by COVID-19 pandemic, a need was felt to temporarily suspend initiation of corporate insolvency resolution process under the Code, initially for a period of six months or such further period, not exceeding one year from 25th March, 2020, to provide relief to Companies affected by COVID-19 to recover from the financial stress without facing immediate threat of being pushed to insolvency proceedings.

The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 which seeks to replace the Ordinance, provides for insertion of a new section 10A in the Code through which Sections 7, 9 and 10 are temporarily suspended in respect of any default arising on or after 25th March, 2020 for a period of six months or such further period, not exceeding one year. Further, inserts a new sub-section (3), in section 66 of the Code to provide that no application shall be filed by a resolution professional under sub-section (2), in respect of such default against which initiation of corporate insolvency resolution process is suspended as per Section 10A.

The Insolvency and Bankruptcy Code, 2016 was enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner for maximisation of value of assets of such persons. Further, it aims to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India.

Tags : CIRP   INITIATION   SUSPENSION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved