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The Government of India announced that Sections 7, 9, and 10 of the Insolvency & Bankruptcy Code, 2016 shall continue to remain suspended for another three months i.e. till March 31, 2021, on account of the COVID -19 pandemic. Sections 7, 9, and 10 deal with the initiation of corporate insolvency proceedings by financial and operational creditors against corporate debtors. The Central Government had originally, by way of an ordinance dated June 2020 announced that all insolvency proceedings for defaults arising on or after March 25, 2020, shall be suspended for a period of 6 months (extendable up to one year). Subsequently, it had notified an extension of such suspension for a further period of 3 months till December 25, 2020.
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