Business Standard

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

Suspension not applicable to defaults committed before March 25, 2020

New Delhi: Union Finance Minister Nirmala Sitharaman and Minister of State Anurag Thakur during a news conference in New Delhi, Thursday, Nov 12, 2020. (PTI Photo/Kamal Kishore)
Premium

File: Union Finance Minister Nirmala Sitharaman addressing a news conference in New Delhi | Photo: PTI

Indivjal DhasmanaRuchika Chitravanshi New Delhi
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

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 21 2020 | 8:45 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com