Government to move NCLT under the IBC
Hemlata Khandelwal / 2021-04-17 06:23:39
New Delhi, Apr 16 (PTI) Commerce and Industry Organization Assocham on Friday urged the government to move NCLT under the IBC (Insolvency) Act this year because of the second severe wave of coronavirus. It should be banned again by December.
In a memorandum sent to the Finance Ministry, the Board of Industries has said that because of the increasing pressure on various businesses, In National Company Law Tribunal (NCLT)Moratorium period must be passed. It should be ensured that the economy is not destroyed by the epidemic.
Companies having company registration in India and they are under financial pressure were barred for one year from being taken to the NCLT under the Insolvency and Debt Insolvency (IBC) Act for resolution. This matter was restored in the last week of March 2021.
Assocham said that with the improvement in the economy, it was the right step to take the ban on moving to NCLT, but now that the second wave of the coronavirus epidemic is spreading rapidly, given the changed circumstances, the cases will be resolved. But the NCLT process should be banned till December 2021.