IBC (Amendment) Ordinance, 2020 beneficial for the survival of numerous corporate debtors amid COIVD-19 scenario: PHD Chamber

No.PR-132 June 16, 2020 New Delhi IBC (Amendment) Ordinance, 2020 beneficial for the survival of numerous corporate debtors amid COIVD-19 scenario: PHD Chamber Industry body PHD Chamber of Commerce and Industry organized a Webinar on Impact of IBC (Amendment) Ordinance, 2020 today. Eminent experts of the Insolvency and Bankruptcy industry including Mr Sanjiv Sen, Senior Advocate, Supreme Court of India and Mr M M Kumar, Chief Justice (Retd.) J&K High Court, Past President, NCLT & Patron, NCLTBA, participated in the Webinar on Impact of IBC (Amendment) Ordinance, 2020 on 16th June 2020. Mr Sanjiv Sen, Senior Advocate, Supreme Court of India, stated that the Insolvency and Bankruptcy Code (IBC), 2016 is a landmark reform in the history of ease of doing business initiatives undertaken by the Government. The code aims to protect the interests of the industry stakeholders by providing one stop solution for resolving insolvencies and by fostering healthy, transparent and vibrant growth of the corporate sector of the country. He highlighted the pre and post (Amendment) Ordinance, 2020 scenario of Insolvency and Bankruptcy Code and stated that the suspension of Section 7, 9 & 10 will provide a great relief to corporate debtors. While worrying about the spread of pandemic Covid-19, Mr M M Kumar, Chief Justice (Retd.) J&K High Court, Past President, NCLT & Patron, NCLTBA, said that saving one's life in the present time is the best earning for an individual. Further, he stated that the Ordinance issued on the 5th June, 2020 is only a partial relief to the ongoing economic crises and unpretending situation of the country. While highlighting about the IBC (Amendment) Ordinance, 2020, he opined that the section 240A should have been used to rescue the MSME sector. He suggested that there is a need for continuous handholding of the MSME sector through various measures and reforms to revive it from the impact of COVID-19. Mr Sanjay Aggarwal, Senior Vice President, PHD Chamber of Commerce and Industry, in his welcome remarks appreciated the proactive, extensive and bold reform measures taken by the Government of India to mitigate the daunting impact of COVID-19 on trade, industry and economy. He highlighted about the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 which has been recently promulgated by the Hon'ble President of India. He added that the Ordinance is as a game-changer for the survival of numerous corporate debtors across the country in the wake of COVID-19 scenario. Mr Vipul Maheshwari, Advocate & Chair, Insolvency and Bankruptcy Committee, PHD Chamber, mentioned that the introduction of Section 10A imposes a specific bar on initiation of corporate insolvency resolution process under Sections 7, 9 and 10 for a default arising on or after 25th March 2020 for period of six months or upto one year as may be notified. He added that there is a need to look at cases where creditors, as per the Purchase Order or Contract of Supply, hold raising of invoices and issue them post the completion of 6 months of the Ordinance to move the date of default as per their convenience. Mr G P Madaan, Advocate & Co-Chair, Insolvency and Bankruptcy Committee, PHD Chamber, moderated the Question & Answer Session. In his remarks, he discussed about the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020. He stated that through suspension of the operation of Sections 7, 9 & 10 of the IBC, 2016, the Ordinance will help prevent corporates, facing distress on account of unprecedented situation of COVID-19, from being pushed into the insolvency proceedings. Mr Dinesh Agarwal, Co-Chair, Insolvency and Bankruptcy Committee, PHD Chamber, in his concluding remarks mentioned that the spread of pandemic Covid-19 has led to a situation of cash crunch, thereby impacting the economy, industry and trade. Further, he accentuated about the provisions of suspension of the Section 7, 9 & 10 of IBC Code. Other speakers were Mr Saurabh Sanyal, Secretary General, PHD Chamber, who delivered the formal Vote of Thanks to all the esteemed panelists and participants, while, Dr S P Sharma, Chief Economist, PHD Chamber, moderated the session. The Webinar was attended by over 150 industry stalwarts across the country. Ends. Media Division PHD Chamber of Commerce and Industry