Home Circulars & Notifications Government Extends Suspension Of Fresh Insolvency Proceedings For Three Months

Government Extends Suspension Of Fresh Insolvency Proceedings For Three Months

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The Government on Thursday has extended the suspension of fresh insolvency proceedings by a period of three months amid Coronavirus Pandemic, effective from September 25. The six-month period of suspension, which was effective from March 25, was to end on Thursday.

An ordinance was promulgated in June for suspension of fresh insolvency proceedings and the same came into effect from March 25 — the day when the nationwide lockdown had come into effect.

The Government has now decided to further extend the suspension for another three months until the last week of December under the newly inserted Section 10A of the IBC.

“In exercise of the powers conferred by section 10A of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) [as inserted by section 2 of the Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 (17 of 2020)], the Central Government hereby notifies further period of three months from the 25th September 2020 for the purposes of the said section,” the government notification read.

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