Central govt suspends operation of Insolvency and Bankruptcy Cody by another 3 months

The Central government has suspended the operation of the Insolvency and Bankruptcy Code, 2016 (IBC) by another three months in order to protect companies in distress due to the Covid pandemic. 

A gazette notification issued in this respect said that the suspension of the section 7, 9 and 10 of the IBC Code initially for six months has been further extended



for another three months starting from 25th September.

The Code was earlier suspended for six months from 25 March to help the firms recover from the financial distress due to the global pandemic. During the suspension of IBC codes, these firms are protected from being referred to insolvency proceedings.