New Delhi, September 19: The Rajya Sabha on Today passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, whereby fresh insolvency proceedings will not be initiated for at least six months starting from March 25 amid the coronavirus pandemic.
Finance Minister Nirmala Sitharaman said that the intention of the IBC is to keep companies a going concern and not liquidate them.
The Bill mandates that a default on repayments from March 25 would not be considered for initiating insolvency proceedings for at least six months.
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