A s a relief to COVID-19 affected industries, petitions under Section 4 of the Insolvency and Bankruptcy Code (IBC) cannot be filed in respect of defaults below ₹1 crore as against the earlier limit of ₹1 lakh. Also, no new cases will be entertained for six months, with suitable amendments in the IBC if COVID continues beyond April 30, 2020. Further, the lockdown period will not be counted for the 330 days to complete the resolution process in respect of about 2,000 cases in pipeline. The IBC will have to come back with few more changes in its new avatar to serve its intended purpose, post-COVID-19.
The results achieved under the IBC till date in respect of about 3,300 cases have been abysmal. Around 2,000 cases have still not been concluded, even after the stipulated and extended deadlines. Of the remaining, only 190 cases are stated to be resolved and others (about 780) are either dissolved or withdrawn or in different stages of appeal. It does not speak well of the efficiency of the professionals or the committee of creditors which is entrusted with this responsibility.
Esta historia es de la edición April 17, 2020 de The Hindu Business Line.
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Esta historia es de la edición April 17, 2020 de The Hindu Business Line.
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