Articles
Doors Available to Creditors when Insolvency Resolution Process is Out of the Window
by Rishi Batta Law Firm
Suspension of Enabling Provisions of the Insolvency
and Bankruptcy Code, 2016
The Ministry of Corporate Affairs, Government of
India had proposed a relief package across the industries due to the impact of
the COVID-19 pandemic, the consequent lockdowns and their aftermath on economic
activities. One of such measures was to suspend certain provisions of the Insolvency
and Bankruptcy Code, 2016 (“IBC”) to protect the small and medium
scale industries from a financial breakdown ultimately leading to their
liquidation on account of the pandemic. Accordingly, the Insolvency and
Bankruptcy Code (Amendment) Ordinance, 2020[1] (“Insolvency Ordinance”) was
promulgated on June 05, 2020 and Section 10A was incorporated in the IBC.
Section 10A suspended sections 7, 9 and 10 of the IBC preventing financial
creditors, operational creditors, and corporate debtors, respectively, from
filing an application for initiation of corporate insolvency resolution process
(“CIRP”) for a period of 6 (six) months or such other later date as may be
notified. The retrospective nature of the amendment was challenged in Ramesh
Kymal vs. Siemens Gamesa Renewable Power Private Limited, however, the National
Company Law Appellate Tribunal upheld the validity of the amendment.[2]
Tatva Legal, Hyderabad
has an experienced team of corporate lawyers who, amongst other services,
advise on a wide range of issues in relation to general corporate advisory and insolvency and bankruptcy
including CIRP proceedings.
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About Rishi Batta 
Law Firm
13 connections, 1 recommendations, 57 honor points.Joined APSense since, July 6th, 2021, From Hyderabad, India.
Created on Aug 5th 2021 19:14. Viewed 136 times.
