The President of India through IBC Ordinance, 2020 on 5^th June, 2020 announced some major relief for the corporate debtors as COVID 19 pandemic has impacted business, financial markets and economy in India and around the world resulting in creating uncertainty and stress for businesses beyond their control.

Suspension of Section 7,9 and 10

The ordinance inserted a new section 10A which suspended the filing of applications for corporate insolvency resolution process of a corporate debtor under section 7, 9 and 10 for any default arising on or after 25^th March, 2020 for a period of six months. (this suspension might be extended further up to 1 year.)

Please note, Creditors can still file application where default in payment is committed before 25^th March 2020 and the amount of default exceeds Rs 1 crore.