Analysis of Insolvency and Bankruptcy Code: In the Light of changes in 2020
Volume III, Issue III, 2020
The year 2020 has marked severe economic drawback in India due to the outbreak of the Covid-19 Virus. The present scenario reflects that more than 2 lakh people have been tested positive with the virus. The fear and the lockdown imposed by the Government have further deteriorated the functioning of the business enterprises. Insolvency and Bankruptcy Code,2016 deals with the provisions for declaring insolvency and resolution of the companies in cases of defaults in payments of their dues. In the light of the present economic conditions several changes have been introduced by the Central Government in the Code to help revive the economy and protect the interests of the corporate debtors as well as stakeholders. This paper aims to analyse and study the three major changes i.e. Insolvency and Bankruptcy Code (Amendment) Act, 2020, Increase in the threshold limit by a notification issued by the Central Government, and Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020.
Keywords: Insolvency, Resolution, Corporate debtors.