The Ministry of Law & Justice, on 23rd September 2020, vide notification no. CG-DL-E-23092020-221917 notified the Insolvency and Bankruptcy Code (Second Amendment) Act, 2020.
It shall be deemed have come into force on the 5th day of June, 2020.
A new Section 10A has been inserted, as per which, notwithstanding anything contained in sections 7, 9 and 10, no application for initiation of corporate insolvency resolution process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 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, no application shall ever be filed for initiation of corporate insolvency resolution process of a corporate debtor for the said default occurring during the said period. It has also been provided that the provisions of this section shall not apply to any default committed under the said sections before 25th March, 2020.
A new sub-section (3) has been inserted in Section 66, as per which notwithstanding anything contained in this section, no application shall be filed by a resolution professional u/s 66(2) in respect of such default against which initiation of corporate insolvency resolution process is suspended as per section 10A.
Copy of notification:CG-DL-E-23092020-221917
-Adv. Tushar Kaushik