Suspension of fresh initiation of insolvency proceedings up to one year
In relation to Insolvency & Bankruptcy Code(IBC) related matters, Smt. Nirmala Sitharaman said that debts related to COVID-19 shall be excluded from defaults under IBC.
“Further enhancement of ease of doing business through IBC related measures,” says Finance Minister Nirmala Sitharaman.
– The minimum threshold to initiate insolvency proceedings raised to Rs 1 crore
– Special insolvency framework for MSMEs will be notified under Section240A of the code
– Suspension of fresh initiation of insolvency proceedings up to one year depending upon the pandemic situation
– Empowering Central govt to exclude Covid-19 related debt from the definition of default under the code