Parliament approves changes in IBC to protect Covid-stressed firms

Replying to a debate on the bill in the Lok Sabha, Finance Minister Nirmala Sitharaman said the amendments would provide relief to companies reeling under the impact of the coronavirus pandemic

Parliament on Monday approved the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020 to protect Covid-19-stressed companies from being pushed into insolvency under the Code.

Winding up a discussion on the bill in Lok Sabha, Finance and Corporate Affairs Minister Nirmala Sitharaman said the provisions will not impact insolvency proceedings initiated before March 25, the day the national-wide lock down was imposed by the government to check the spread of coranavirus.

"We have to prevent companies facing distress on account of pandemic from being pushed into insolvency," the minister said, adding the many other countries have extended support to the