Three Months More Relief To The Companies By Government

Three months more relief to the companies from the insolvency process, the government took the decision in view of Corona. The bankruptcy and rectification law will not apply for the next three months to companies struggling with economic crisis due to the Corona epidemic.

The Corporate Ministry has suspended the Insolvency and Bankruptcy Act for the next three months. On Thursday, an order in this regard was issued by the ministry. The law was suspended for six months from March 25 in view of the Corona epidemic, which expired on September 24.

Now again this law has been suspended for the next three months. This means that the process of action on any company under the Insolvency and Bankruptcy Act cannot be initiated for the next three months.

Hundreds of companies are expected to get relief from this decision of the government. However, according to sources, this decision of the government may increase the pressure on the banks as the process of action on the bankrupt company will not be started and the recovery from them will be equally delayed.

On the other hand, the MSME says that under the Insolvency Act against the company, liability of one crore is required. Because of this small companies are unable to resort to insolvency law against big companies.

MSME expert Mukesh Mohan Gupta said that if a company has taken 99 lakhs of 50 people and is not paying it, that company cannot be dragged for insolvency action. This action can be started only on the liability of one crore. MSME is seeking to reduce this limit to one lakh rupees. So that small companies can withdraw their dues from big companies.

Meanwhile, the last trading day of the week opened with the stock market rising. The Bombay Stock Exchange index Sensex opened up 438.29 points at 36,991.89, while the Nifty opened 104.85 points higher at 10,910.40. Yesterday on Thursday, the BSE 30-share sensitive index Sensex closed down 1,114.82 points, or 2.96%, at the level of 36553.60 points.

Similarly, NSE’s Nifty fell 326.30 points, ie 2.93 percent, to close at the level of 10805.55. IndusInd Bank shares were the biggest losers on Sensex by 7.10 percent. Similarly, Bajaj Finance shares also lost 6.63 percent. Mahindra & Mahindra shares fell by 6.37%.