Abstract

Insolvency and Bankruptcy Ordinance 2020- An Overview Regarding Benefaction and Inconsiderateness

Satabdi Dey

Volume: 11 Issue: 1 2021

Abstract:

Insolvency and Bankruptcy ordinance 2020 is amongst the recent amendments of Government of India. The ordinance is enacted by president of India on 5th June 2020 to protect the corporates that have a significant contribution to the development of economy. Many corporates in all over the globe is struggling to combat with the COVID outbreak. A large number of countries have implemented a temporary change in insolvency framework. India has also adopted Australian approach in current times to avoid any undesirable situation. The sections governing for initiation and application for CIRP have been suspended. In the said context 2 different new sections have been inserted in the amended law. The said law has also prohibited the Resolution Professionals from filing an application under section 66(3). These days the said perpetual protection for a minimum of 6 months to 1 years has become a double-edged sword to the financial and operational creditors. Though various incentives have been introduced by Government of India to protect the MSMEs in the recent times Alternatively, few relaxations and changes in reservation policies adopted by RBI and Government of India can also reduce the burden of financial creditors.

DOI: http://doi.org/10.37648/ijrssh.v11i01.018

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