Reimpose moratorium on taking cos to NCLT under IBC due to COVID: Assocham to govt

By: |
April 16, 2021 5:34 PM

Industry body Assocham on Friday urged the government to reimpose moratorium on taking debt-ridden firms to the NCLT under the IBC till December this year following the severe second wave of coronavirus.

Industry body Assocham, debt-ridden firms to the NCLT , Bankruptcy Code, secomf wave of Covid, Industry body Assocham, debt-ridden firms to the NCLT , Bankruptcy Code, secomf wave of Covid, representation of finance ministryThe moratorium was rightly lifted earlier in line with the opening of the economy, Assocham said

Industry body Assocham on Friday urged the government to reimpose moratorium on taking debt-ridden firms to the NCLT under the IBC till December this year following the severe second wave of coronavirus.

In a representation to the Finance Ministry, the chamber said that given the increasing pressure on businesses, it would be imperative to extend the NCLT (National Company Law Tribunal) moratorium to ensure that the pandemic “does not wreak havoc” on the economy.

After a year-long moratorium on taking the financially stressed companies, for the NCLT resolution under Insolvency and Bankruptcy Code (IBC), the normalcy was restored in the last week of March 2021, it added. The moratorium was rightly lifted earlier in line with the opening of the economy, it said, adding the situation has reversed after the outbreak of the second wave of COVID-19.

“In view of the altered situation, placing the NCLT resolution process under suspension again till December this year is a critical interim measure, which needs to be expedited, until targeted assistance can be granted, after a comprehensive assessment,” it said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Piramal resolution for DHFL: 63 Moons moves Supreme Court against NCLT order
2Kumar Mangalam Birla steps down as Vodafone Idea chairman
3Competition Commission of India clears PNB Housing Finance deal with Carlyle