Much to the relief of small businesses, the government is likely to extend IBC suspension further to prevent companies from being forced into insolvency proceedings due to debt defaults triggered by the COVID-19 crisis. The government may extend IBC suspension by another three months.
As per earlier reports, the government, last month, was still undecided whether to extend the suspension further or not because arguments on both sides are strong. A senior government official was quoted in a report saying that while on the one hand green shoots were visible in the economy and the stock market was booming, on the other things were not moving under the Insolvency and Bankruptcy Code (IBC). Both are valid arguments, stated the official.
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