Suspension of Sections 7, 9 & 10 of the IBC for a period of one year
By INSOL India - Editorial Team Posted On : June 01, 2020
The Finance Minister, Nirmala Sitharaman, has suggested that the continuation of the prevalent situation in the country on account of COVID-19 and any change for the worse in relation to the same could lead the Central Government to consider suspending sections 7, 9 and 10 of the IBC for a period of one year. This would be a step taken to help companies which are being forced into the insolvency proceedings on account of default in repayment of loans.
Additionally, the threshold for determining default under section 4 of the IBC has been increased from INR 1 lakh to INR 1 crore by the Central Government by way of notification dated 24 March 2020.