Suspension of initiation of corporate insolvency resolution process  [Section 10A ]

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....Ordinance, 2020, on June 5, 2020, to exclude defaults arising from the impact of the pandemic and the nationwide lockdown for the purposes of insolvency proceedings. * This was subsequently replaced by the Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 which was notified on September 23, 2020 (having effect from June 5, 2020). * The ordinance has inserted Section 10A into the IBC....

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....the IBC (which deals with the CIRP and liquidations) shall apply to matters relating to the insolvency and liquidation of CDs where the minimum amount of the default is Rs. 100,000/-. The Central Government may, by notification, specify a higher minimum amount, but it shall not be more than Rs. 1 Crore. * Recognizing the stress faced by companies as a result of COVID-19, the Central Government ....