The government has again extended the suspension of fresh proceedings under the insolvency law by three more months, starting December 25.
Fresh insolvency proceedings were suspended from March 25 due to the disruptions caused by the coronavirus pandemic. Initially, the suspension was for six months starting from March 25 and then, it was extended by three months.
The corporate affairs ministry took this step to provide relief for companies reeling under the impact of the pandemic. A bill to amend the Insolvency and Bankruptcy Code was cleared by Parliament in September.