linkedin
BROUGHT TO YOU BY
Exclusive Access, Inclusive Growth

WELCOME TO ET PRIME

BROUGTH TO YOU BY
Exclusive Access, Inclusive Growth
ET Prime
Policy and regulations

The IBC puzzle: new provisions stir confusion, mar Covid-19 relief for insolvency stakeholders

Over four months into the pandemic, the insolvency ecosystem is still struggling with the ambiguities in the notification that increased the default trigger to INR1 crore from INR1 lakh earlier. An ordinance that came two months later has not put the matter to rest. As debtors and creditors play a cat-and-mouse game, confusion prevails.
font size
FONT SIZE
save
SAVE
saved
SAVED
Gift this article
GIFT ARTICLE
By
5 Aug 2020 8 Mins Read 0 comment
iStock
In February, a subsidiary of a Delhi-based financial institution had generated a demand notice under the Insolvency and Bankruptcy Code (IBC) against some personal guarantors for default of a corporate loan over a year ago. While the event happened more than a month before the pandemic-triggered lockdown was imposed, the National Company Law Tribunal (NCLT) has not taken up
he says. Participants feel that NCLTs should strike a middle path to ensure nobody is unfairly disadvantaged. “There should be some way out so that the corporate debtors do not hide under the Covid-19 situation for previous default and genuine cases are given relief across India by all benches,” sums up Sanghai. ( Graphics by Mohammad Arshad)
In February, a subsidiary of a Delhi-based financial institution had generated a demand notice under the Insolvency and Bankruptcy Code (IBC) against some personal guarantors for default of a corporate loan over a year ago. While the event happened more than a month before the pandemic-triggered lockdown was imposed, the National Company Law Tribunal (NCLT) has not taken up he says. Participants feel that NCLTs should strike a middle path to ensure nobody is unfairly disadvantaged. “There should be some way out so that the corporate debtors do not hide under the Covid-19 situation for previous default and genuine cases are given relief across India by all benches,” sums up Sanghai. ( Graphics by Mohammad Arshad)

The latest from ET Prime is now on Telegram. To subscribe to our Telegram newsletter click here.

Gift this story

YOU CAN GIFT 0 MORE STORIES THIS MONTH

Maximum 10 Email IDs allowed

300 characters remaining

Gift Sent Successfully

Limit Reached
Limit Reached

You’ve gifted all the 0 articles from your monthly gift bucket!

Please come back next month.

0 more articles will be waiting for you in your gift bucket.

Current Edition

[[^message]]

Result

[[/message]] [[#message]]

[[message]]

[[/message]]