Demand from lenders for suspension of IBC grows amid second Covid wave

As second Covid wave is expected to impact mid-sized, small companies, lenders seek a breather

Indian lenders will not rush to send companies to the NCLT (National Company Law Tribunal) for debt resolution under the IBC (Insolvency and Bankruptcy Code), 2016 -- taking into account the second wave of Covid-19 pandemic. Instead taking a cue from the industry, lenders are planning to ask the government to suspend the IBC process yet again so as to give an opportunity to companies to restructure their finances to cope up with pandemic, say lawyers.

Lawyers said due to restrictions imposed by various state governments in some form or the other, working of the NCLT all over India, NCLAT