On Wednesday (June 3, 2020) it was cleared by the Cabinet that the proposal to suspend the insolvency proceedings under the Insolvency and Bankruptcy Code to avoid companies at large from being forced into insolvency proceedings for non-performing assets during the COVID-19 period starting from 25 March until a date which will be notified by the government.
This move introduced by the government focusses on the introduction of a new clause – 10A, under section 10 of the Insolvency and Bankruptcy Code, 2016 which states that creditors cannot drag any company to courts. Insolvency proceedings, which will be in effect for the next six months and can be extended up to one year. It is therefore implied that any default from 25 March until a date, which will be notified later, can never be dragged for insolvency proceedings. This will give a lifetime to such defaults. Further, on 17 May 2020, the Finance Minister Nirmala Sitharaman as part of the Atmanirbhar Bharat Package announced the suspension of any fresh initiation of insolvency proceedings up to 1 year, permanently excluding debt accrued due to COVID-19 to be considered as default. However, the government had not notified the date from which the move will be considered. Similarly, Sitharaman has said that if the situation remains bleak beyond April 30, the government may consider suspending Section 7, 9, and 10 of the IBC, 2016 for six months to stop companies at large from being forced into insolvency proceedings during such a crisis.
The new clause which was introduced overrides sections 7, 9 and 10 of IBC wherein section 7 deals with financial creditors initiating insolvency action, section 9 dealing with operational creditors initiating action and lastly section 10 dealing to allow a defaulting company to approach the National Law Company Tribunal (NCLT) to declare it insolvent. It was also reported that the government has decided to provide this relief to companies from being dragged into insolvency proceedings for the next six months, through a cabinet proposal which was cleared on 22nd April 2020, but it had not earmarked a period for which the clause should be considered. It was also reported that the new clause section 10A is to suspend sections 7, 9, and 10 for six months or until further order, with a rider that the amendment clause cannot be extended for more than a year and will be a one-time measure. The proposal indeed approved by the cabinet is to move the amendments via the promulgation of an ordinance and a formal announcement on the ordinance is now expected post it gets the president’s nod.
[Read Ordinance]
Union Cabinet Supports Jammu & Kashmir Official Languages Bill, 2020
Executive
Sep 04, 2020
Rhea Banerjee
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Editor: Ekta Joshi
)
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The Union Cabinet has accepted the Jammu and Kashmir Official Languages Bill 2020 where five languages are decided to be the official language of Jammu and Kashmir namely- Urdu, Kashmiri, Dogri, Hindi, and English as stated by the Union Minister Prakash Javadekar. He further added that the Bill will be soon introduced in the Parliament’s monsoon session. The Union Minister, Prakash Javadekar also mentioned that the bill was approved based on public demand. Dr. Jitendra Singh (union...
Union Cabinet approves ‘National Education Policy’ with various new changes [READ POLICY]
Executive
Jul 30, 2020
Prachi Misra
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Editor: Ekta Joshi
)
15 Shares
A committee for drafting a national education policy has been set up and approved by Union Minister.‘Committee for the Draft Education Policy’ was constituted under the chairmanship of eminent scientist Dr. K Kasturirangan and the draft was submitted on 31st May 2020.Under the new policy, the earlier 10+2 structure is replaced with a new 5+3+3+4 curriculum structure corresponding to ages 3-8, 8-11, 11-14, and 14-18 years. The policy reads, “All students will take school examinations...
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