IBC to remain 'rightfully' suspended till FY21 end: FM Sitharaman

Suspension not applicable to defaults committed before March 25, 2020

Union Finance Minister Nirmala Sitharaman on Monday said the Insolvency and Bankruptcy Code (IBC) would remain suspended until the end of the current financial year in view of “major stress” owing to the Covid-19 pandemic.

“The suspension of the IBC has been postponed even further, from 25th of December to, I think, March 31, 2021,” Sitharaman said while addressing the Bangalore Chamber of Industry and Commerce via videoconferencing.

In June, in order to give a breather to companies facing stress due to Covid-19, the government had brought an Ordinance exempting them from facing corporate insolvency resolution proceedings against any default arising on