New Delhi: Finance Minister Nirmala Sitharaman today said that the purpose of the Insolvency and Bankruptcy Code (IBC) is not to shut down companies but to maintain their existence. He said that IBC is doing a good job and has succeeded in fulfilling its objective. Sitharaman said this while replying to the discussion in the Rajya Sabha on the Insolvency and Bankruptcy Disability Code (Second Amendment) Bill, 2020.
The bill was passed by voice vote in the Rajya Sabha. The bill will replace the ordinance brought in June in this regard. There is a provision under this bill that no new IBC action will be started from March 25 for six months due to corona virus. The Finance Minister said that the ordinance was brought about due to the unprecedented situation created due to the Kovid-19 epidemic. The lockdown was imposed on 25 March to prevent the spread of corona virus in the country.
