The economic downturn triggered by the Covid-19 pandemic has caused unprecedented havoc on businesses in India in almost every sector, which has been dubbed by the Organization for Economic Cooperation and Development (OECD) as the biggest peacetime downturn in a century.
To offer respite to stressed businesses, the government of India has announced the suspension of corporate insolvency under theInsolvency and Bankruptcy Code, 2016 (IBC)for a period of six months commencing 25 March 2020. This suspension is given effect through an IBC (Amendment) Ordinance, 2020 effective from 5 June 2020.
Prior to this, the government of India had amended the IBC to increase the minimum amount of default for initiating an insolvency resolution process…
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