The Insolvency and Bankruptcy Code (Second Amendment) Act, 2020
By INSOL India - Editorial Team Posted On : September 23, 2020
On September 23, 2020, the IBC (Second Amendment) Act 2020 was notified, which in turn repealed the IBC (Amendment) Ordinance 2020. The amendment replicates the provisions of the ordinance, which had introduced section 10A to the IBC, providing for the suspension of corporate insolvency resolution process (“CIRP”) for a period of up to one year from March 25, 2020.
Additionally, a new section 66(3) has been introduced in the IBC, which prohibits the resolution professional from making any application for seeking contribution from the director of a corporate debtor on account of any wrongful or fraudulent trading in relation to a default against which the initiation of CIRP is suspended in accordance with section 10A of the IBC.
Subsequently, vide notification dated September 24, 2020, the suspension of the CIRP was extended until December 25, 2020.
Additionally, a new section 66(3) has been introduced in the IBC, which prohibits the resolution professional from making any application for seeking contribution from the director of a corporate debtor on account of any wrongful or fraudulent trading in relation to a default against which the initiation of CIRP is suspended in accordance with section 10A of the IBC.
Subsequently, vide notification dated September 24, 2020, the suspension of the CIRP was extended until December 25, 2020.