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The Rajya Sabha has passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, wherein fresh insolvency proceedings will not be initiated for at least 6 months starting from March 25 due to the coronavirus pandemic.
Finance Minister Nirmala Sitharaman said that the intention of the IBC was to keep companies going and not to liquidate them. As per the Bill, any default in repayment from March 25, the date from which a nationwide lockdown was imposed on the entire country to curb the spread of the coronavirus pandemic, would not be considered for initiating any insolvency proceedings for at least 6 months.
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