New Delhi: President Ram Nath Kovind on Friday promulgated an Ordinance suspending the Insolvency and Bankruptcy Code (IBC) for at least six months so that no business will be dragged into a bankruptcy tribunal for defaults during this period starting 25 March.India rolled out stringent stay at home restrictions on 25 March that shut down the economy for two months that pushed many companies towards bankruptcy.The IBC (Amendment) Ordinance says that no business can ever be taken to bankruptcy tribunals for defaults during the period of its suspension.
The IBC suspension is applicable for a period “of six months or such further period, not exceeding one year from such date, as may be notified in this behalf".However, the IBC suspension will.