An ordinance has been issued on 4 April to amend the Insolvency and Bankruptcy Code (IBC).
The government has amended the Insolvency Law. Under this, a pre-packaged solution process has been proposed for Micro, Small and Medium Enterprises (MSME). According to a notification, an ordinance has been issued on 4 April to amend the Insolvency and Bankruptcy Code (IBC). The moratorium of some provisions of the IBC has ended about two weeks ago. Some provisions of the IBC were postponed in view of the bottlenecks in economic activity caused by the Coronavirus Pandemic. Under this, there was a ban on starting a new case under the IBC for one year from March 25, 2020.
According to the ordinance, due to the nature of business of MSMEs and their easy corporate structure, a need was felt to make some special arrangements for settlement of insolvency matters related to MSMEs. In such a situation, an efficient and alternative insolvency resolution process was required for MSMEs.
This will provide a fast, cost-efficient and maximum value-ensuring solution for all stakeholders. The ordinance states that in view of this, a pre-packaged solution process has been introduced for MSMEs.
Saumitra Mazumdar, partner of J Sagar Associates, said that a pre-packaged route has been made available for correct and practical cases from the IBC Amendment Ordinance-2021. This will cause the least hindrance in business. IBC provides time-bound solutions to market-linked and stressed assets.
read this also- Withdraw money from ATMs of these big banks including SBI without debit card, this is the whole way
read this also- Open these accounts in the post office or bank for just 500 rupees, even the court will not be able to seize the money deposited in it.