Pre-Packaged Insolvency Resolution Process for Corporate Persons known as MSME – IBC 2021– 04.04.2021

THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ORDINANCE, 2021

COVID-19 pandemic has had an impact on companies, financial markets, and economies around the world, including India, and has harmed the operations of micro, small, and medium businesses, placing many of them in financial jeopardy;

Government has taken a number of steps to relieve the consequences of the pandemic, including raising the minimum amount of default for mortgages.

• Limiting the amount of money that can be used to start a corporate insolvency resolution process to one crore rupees and suspending the filing of applications to start a corporate insolvency resolution process.
• In respect of defaults occurring during the one-year period starting March 25, 2020;
• Period of suspension for filing applications for the start of the corporate insolvency resolution process expired on March 24, 2021;

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Combating the pandemic or ensuring economic recovery, the country has shown remarkable resiliency;

THE GOVERNMENT HAS NOTIFIED SOME IMPORTANT POINTS ON NEW ITR FORMS.

Micro, small, and medium businesses are vital to India’s economy because they contribute significantly to the country’s gross domestic product and employ a large number of people;

• Due to the peculiar nature of their companies and simpler corporate structures, it is deemed important to resolve the basic requirements of micro, small, and medium enterprises relating to the resolution of their insolvency as soon as possible;

It is deemed expedient to provide an efficient alternative insolvency resolution mechanism for corporate persons classified as micro, small, and medium enterprises under the Insolvency and Bankruptcy Code, 2016, ensuring quicker, cost-effective, and value-maximizing outcomes for all stakeholders in a manner that is least detrimental to the continuity of their businesses as per IBC , 2016