The Ministry of Law and Justice vide its notification dated 23rd September 2020 has published the Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 which shall be deemed to have come into force from 5th June 2020.
Through this amendment a new section 10A has been inserted which has temporarily suspended the initiation of the corporate insolvency resolution process under the IBC, for a period not exceeding one year from 25th March, to provide relief to companies affected by COVID-19 to recover from the financial stress.
Provided that no application shall ever be filed for initiation of corporate insolvency resolution process of a corporate debtor for the said default occurring during the said period.
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