 "It is pointed out that giving a loan moratorium or recast is not a compulsion for lenders but an option")
In a fortnight from now, a one-time loan recast policy for India Inc. may be on offer to take care of pandemic-related stress. But how is it to be ascertained that the pain was, indeed, triggered by the pandemic?
“The preamble to the Insolvency and Bankruptcy Code’s (IBC’s) Ordinance (suspending it for the time being) refers to an ‘unprecedented situation’ and business suffering on account of ‘reasons beyond their control’. In the absence of any parameters, this could lead to disputes,” says Divyanshu Pandey, partner at J Sagar Associates.
His observation should be seen in the context of the Reserve
