The Central govt. has put forward to do some more Amendments to IBC laws in view of the Economic impact of COVID-19 Lockdown and Business shut down. The Central govt. is likely to do more changes to IBC Amending the laws that any default in the COVID-19 emergency situation shall not be treated as Default apart from increasing the threshold of the claims limit form 1 Lakh Rupee to 1 Crore Rupees. The amendment will be brought into effect that no new cases shall be filed against any company for a period of one year instead of 6 months that was done earlier.
Though central Govt. is trying to put all its efforts to give a new lifeline for the companies, and brining in major changes in the laws. How will this really impact the Economy of the country? The answer for this is not clear, because the lock down is relaxed, Industries of all categories have started functioning will the Economy gain and take back the position as it existed PRE COVID stage is again uncertain. Because the 50 days lock down not only put back the Economy of the Country to a Whole new start along with loss of Jobs, common man does not have earnings, small business are striving hard to gain back the position and sustain in the business. Unless until the common man has got the capacity to spend easily all these efforts may not give expected results. As every person and every Businesses have to start from a New beginning.
The Govt. proposes to bring MSME’S under the IBC code with new Amendments to protect the Industries and the lifeline of small Business to labor class.
This action though is taken to protect the Industries there are chances that intentional defaults also get protected with new Amendments which will be a open way to hurt the Economy again.
We have to wait for the Positive things to happen to every human being to Survive and then only the Industries can sustain leading to the Economic development of the country.