In a bid to avoid frivolous applications under the IBC, one of the amendments to the insolvency law passed in Parliament on March 13 — the Insolvency and Bankruptcy Code (Amendment) Act, 2020 — put in place a minimum threshold for certain class of creditors to initiate insolvency proceedings.
According to the amendment to Section 7 of the Code, in the case of real estate allottees and security or deposit holders represented by a trustee or agent, the insolvency application should be filed jointly by at least 100 such creditors or 10 per cent of their total number, whichever is less.
Given the growing fears of a widespread impact of Covid-19 on the economic growth of the country — with some segments and sectors appearing more vulnerable — a similar threshold may have to be put in place to include a wider set of cases, to prevent large-scale applications under IBC.
Bu hikaye The Hindu Business Line dergisinin March 20, 2020 sayısından alınmıştır.
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Bu hikaye The Hindu Business Line dergisinin March 20, 2020 sayısından alınmıştır.
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