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 Of the remaining, only 190 cases are stated to be resolved and others (about 780) are either dissolved or withdrawn or in different stages of appeal.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.
Denne historien er fra April 17, 2020-utgaven av The Hindu Business Line.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 17, 2020-utgaven av The Hindu Business Line.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Covid Presents An Opportunity For India
India must attract investors exiting China post-Covid. Streamlining of project clearances and relaxation in FRBM norms will help
Did Alternative Assets Shield You From Covid-19 Volatility?
The assets closely linked to stock and debt markets could not stave off the losses
How To Put Aircraft To Bed
Preserving grounded planes, to get them up and flying at short notice, is a challenging task. Ashwini Phadnis captures the process
There Can Be No Going Back On WFH
Covid-19 has fast-forwarded the shift to ‘work from home’. However, some face-to-face connect will always be needed
UN, WHO Urged To Ensure ‘Benefit Sharing' Of Covid-Related Data
Biopharma firms should reach vaccines, medicines to poor nations at an affordable price, say civil society bodies
With No Clear Signal From Rlys, States Explore Ways To Bring Back Migrants
Quarantine centres, cross-country buses being arranged even as migrants hop on to boats, trucks and ambulances
Centre Allows All Neighbourhood Shops To Open But With Riders
Final call will be taken by local authorities; shopping complexes that draw fewer ‘outsiders’ are permitted to operate
Covid Impact Relatively Muted In India
Compared to Italy and the US, India’s rate of infection spread has been slow. This can be attributed to the strict measures in place
How Global Trade Will Fare Post-Covid
China isn’t likely to lose its pre-eminent position soon. India, for one, will need to make manufacturing globally competitive
How To Curb Harassment In The Virtual Office
Training and sensitisation are essential. Institute a strict dress code and chat etiquette to ensure professionalism during video calls
