Centre extends suspension of insolvency initiation under IBC till March 25
December 23, 2020
Calibrated end of suspension may have helped debtors, say experts The Ministry of Corporate Affairs (MCA) has extended by three more months from December 25 to March 25 the suspension of insolvency proceedings initiation against corporates for debt defaults.
A six-month suspension was first introduced on June 5 for debt defaults arising post March 25, 2020, when the Covid-induced lockdown was announced. The suspension was to end on September 25, but was extended up to December 25.
The latest MCA move comes on the heels of Finance Minister Nirmala Sitharaman indicating a few days back, at an industry interaction, that the government had decided to extend IBC suspension till March next year.
Corporate Insolvency: IBBI may rein in engagement of third party consultants
December 20, 2020
× Insolvency professionals appointed under the Insolvency and Bankruptcy Code (IBC) may not find it all that easy to contract out their duties to third party consultants or advisors (including non Insolvency Professional Entity) during corporate insolvency resolution process (CIRP) if the latest IBBI discussion paper is anything to go by.
The Insolvency and Bankruptcy Board of India (IBBI), which has released the discussion paper on ‘Engagement of “professionals” in a corporate Insolvency Resolution Process’, has invited public comments on several questions including whether only a person having an authorisation from the regulator of a profession to practice the profession may be appointed as a “professional” by an IP in a CIRP.