It would be unfair for healthy firms to face dissolution for no fault of theirs. To that extent, relief from the IBC was indeed needed The government is expected to suspend some provisions of the Insolvency and Bankruptcy Code (IBC) that trigger legal proceedings against defaulters.
Reports suggest that once this is done, businesses that otherwise would have been pushed into the usual court process would be protected from such action for six months, perhaps even up to a year.
This would offer companies a reprieve from difficulties arising from the covid-19-induced lockdown. Many have suffered an abrupt cut-off of cash flows, hurting their ability to service loans.