The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020

Sep 16, 2020 | by Avantis RegTech Legal Research Team

Secretarial Compliance

The Insolvency and Bankruptcy Board of India (IBBI) on September 15, 2020 has introduced the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 in the Rajya Sabha to further amend the Insolvency and Bankruptcy Code, 2016. 

The following amendments are introduced or suggested under the Bill:-

• A new Section 10A shall be inserted which specifies “Suspension of initiation of corporate insolvency resolution process” namely, 

“No corporate insolvency resolution process can be initiated against the debtor for any default arising on or after March 25, 2020 for a period of six months or such further period, not exceeding one year from such date. 

Provided, no application shall ever be filing for default during the said period  against debtor.”

• A new sub-section Section 66(3) shall be inserted namely,

“No application shall be filed by the Resolution Professional under sub-section (2) related to default against which the initiation of insolvency resolution process is suspended as per Section 10A.”

The Bill shall be deemed to have come into force on June 5, 2020 and the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 has been repealed.

[Bill No. XXXI of 2020]


Related Updates

Alternate Text

Get updates on the go on RuleZbook Mobile App.