COVID-19: Staving Bankruptcy – Recent Reforms

COVID – 19 has brought the world to a halt, prompting governments around the world to take strict measures for its containment. India has also announced a 21-day lockdown, starting 25 March 2020. While it is difficult to anticipate the full impact of the lockdown on the economy, it is clear that no business, large or small will remain unaffected.

Recognising that most businesses will face immediate financial stress, the Finance Minister, Nirmala Sitharaman made an omnibus announcement on 24 March 2020, providing certain relaxations in statutory and regulatory compliances under tax and corporate laws. Measures were also announced in respect of the Insolvency and Bankruptcy Code, 2016 (IBC).