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Emergency Act to prevent Insolvency petitions against companies/organizations!
Posted on: 13/Apr/2020 5:58:37 PM
With the existing lockdown imposition, several organizations/companies/production units have remained closed! They have been struggling to make the payment for salary, repayment of loans taken, and the taxes!
In this situation, the central government has planned to introduce a revision in the Insolvency Act in order as an emergency operation to prevent any petitions filed for insolvency against these companies.
However, this will not be applicable to the units who have been petitioned for insolvency.
It is being stated that this proposal for an emergency revision in the Insolvency Act will be passed immediately during the meeting of the cabinet ministry.
It may be noted here that as per the Insolvency Act, the companies which gave loans to the companies can file a petition for Insolvency in case these companies fail to repay the loans as agreed.
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