Six-month IBC suspension ends today, decision on extension soon

Industry is backing an extension on grounds that the economy is still reeling under negative growth

The six-month suspension of insolvency and bankruptcy proceedings against companies comes to an end on Thursday and government sources have hinted that there could be another extension in the light of the economic stress caused by the pandemic.  

The Ministry of Corporate Affairs has received extensive feedback from the industry and is likely to announce a decision on whether or not the corporate insolvency resolution process will be suspended for another six months this week. 

The government, through an ordinance promulgated in June, had amended the Insolvency and Bankruptcy Code (IBC) exempting companies from facing insolvency proceedings against any default