Insolvency and Bankruptcy Code suspension extended till March 31, 2021

The suspension of the Insolvency and Bankruptcy Code (IBC) has been extended for another three months, till March 31, 2021. This will help businesses cope with the economic disruptions caused by the coronavirus pandemic and the subsequent lockdowns. With this, defaults for a whole year from March 25, 2020 will not be subject to insolvency proceedings. The suspension was originally scheduled to remain in effect for six months from March 25, 2020, when the centre imposed a nationwide lockdown to curb the spread of Covid-19. It was later extended for another three more months till December 25, 2020.