New Delhi: Rajya Sabha on Saturday passed amendments to the insolvency law for suspension of fresh insolvency proceedings for at least six months starting March 25 amid the coronavirus pandemic, with Finance Minister Nirmala Sitharaman saying a decision on extending the suspension of relevant provisions will be taken next week.
In the wake of the COVID-19 situation, the government decided to suspend the provisions starting from March 25 for six months by promulgating an ordinance in June.
Default on repayments from March 25, the day when the nationwide lockdown began to curb coronavirus infections, would not be considered for initiating insolvency proceedings for at least six months.
The six-month period is ending next week.
The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, seeks to replace the ordinance issued in June, was passed by a voice vote after a…