bankruptcy

Initiation of CIRP suspended for a further period of three months from 25.12.2020 

Initiation of CIRP suspended for a further period of three months from 25.12.2020
 
The Ministry of Corporate Affairs (MCA) vide notification SO. 4638(E) dated 22nd December 2020 has further suspended the initiation of CIRP for a further period of three months from 25.12.2020 

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Note: The Insolvency and Bankruptcy Code (Amendment) Ordinance 2020 inserted a new Section 10A to the IBC to suspend initiation of corporate insolvency resolution process.

As per the inserted section 10A, no application for initiation of corporate insolvency resolution process of a corporate debtor can be filed, for any default arising on or after 25th March, 2020 for a period of six months or such further period, not exceeding one year from such date, as may be notified in this behalf. Also, no application can ever be filed for initiation of corporate insolvency resolution process of a corporate debtor for the said default occurring during the above period.  However, the provisions of section 10A shall not apply to any default committed under the said sections before 25th March, 2020.

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