[Breaking] Debts Incurred Due To COVID-19 Not To Be Treated As ‘Default’ For IBC; No Fresh Insolvency For A Year : Finance Minister

first_imgTop Stories[Breaking] Debts Incurred Due To COVID-19 Not To Be Treated As ‘Default’ For IBC; No Fresh Insolvency For A Year : Finance Minister LIVELAW NEWS NETWORK16 May 2020 11:31 PMShare This – xNirmala Sitharaman, Union Minister of Finance and Corporate Affairs, on Sunday announced that debts incurred due to COVID-19 lockdown will not be treated as “default” under the Insolvency and Bankruptcy Code 2016.There will be an embargo on fresh insolvency proceedings will be initiated for a period up to one year, depending on the pandemic situation.Minimum threshold to initiate…Your free access to Live Law has expiredTo read the article, get a premium account.Your Subscription Supports Independent JournalismSubscription starts from ₹ 599+GST (For 6 Months)View PlansPremium account gives you:Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.Subscribe NowAlready a subscriber?LoginNirmala Sitharaman, Union Minister of Finance and Corporate Affairs, on Sunday announced that debts incurred due to COVID-19 lockdown will not be treated as “default” under the Insolvency and Bankruptcy Code 2016.There will be an embargo on fresh insolvency proceedings will be initiated for a period up to one year, depending on the pandemic situation.Minimum threshold to initiate insolvency proceedings will be raised to Rs 1 crore from the Rs 1 lakh.For MSMES, a special insolvency framework will be notified under Section 240A IBC, added the Finance Minister.The Minister said that an appropriate Ordinance will be brought in for effecting these changes.Also Read : Technical Defaults Under Companies Act To Be Decriminalized : Finance Minister  Subscribe to LiveLaw, enjoy Ad free version and other unlimited features, just INR 599 Click here to Subscribe. All payment options available.loading….Next Storylast_img

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