President promulgates Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020

President promulgates Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020

Insertion of new Section 10 A after Section 10.

Suspension of initiation of corporate insolvency resolution process.

“Notwithstanding anything  contained in Sections 7, 9 and 10, no application for initiation of corporate insolvency process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 for a period of 6 months or such further period, not exceeding 1 year from such date, as may be notified in this behalf:

Provided that no application shall ever be filed for initiation for corporate insolvency resolution process of a corporate debtor for the said default occurring during the period.

Provisions of this Section shall not apply to any default committed under the said section before 25th March.

Amendment of Section 66

In Section 66, after sub-section (2) following sub-section shall be inserted:

“(3) Notwithstanding anything contained in this section, no application shall be filed by a resolution professional under sub-section (2) in respect of such default against which initiation of corporate insolvency resolution process is suspended for Section 10 A”

 

ORDINANCE


Ministry of Law and Justice

[Notification dt. 05-06-2020]

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