Has the parliament passed the modified insolvency bill and what does that mean?
Answer
Answer
On 19 September, the Upper House passed the Insolvency and Bankruptcy Code - Second Amendment Bill, 2020. Under this bill, fresh insolvency proceedings will not be initiated for a minimum period of 6 months starting from March 25.
Finance Minister clarified that the intention of the Code was to keep companies as going concerns and not to liquidate them. Consequently, any default post March 25 will not be considered for initiating insolvency proceedings for a minimum period of 6 months.