Let me clarify that the Insolvency code has not been scrapped or banned but it has only been put in suspension for a period of 6 months. The idea is to overcome the pressures created in the midst of the Coronavirus. This will ensure that banks and other lenders will not be able to put pressure on small and medium sized companies by threatening to take them to bankruptcy court. This would come as a boon, at least, for companies that are staring at a potential default in this period due to a severe crunch on the top line of the company. Companies will not be forced into bankruptcy under the IBC as a pressure tactic used by the bankers. The threshold for default for reference to the IBC has already been hiked from Rs.1 lakh to Rs.1 crore. This will remain in force till the lag effect of COVID-19 is over. However, this could have the negative impact of adding on to the burgeoning NPAs of the banking system in India.