An expert committee needs to be set up to identify industries affected by Covid-19. At the outset, airlines, hotels, restaurants, transport firms, automobile companies and toll plaza companies can be included in them.
The Insolvency and Bankruptcy Code (the “Code”) was promulgated with effect from 1 December 2016 and the powers of Adjudicating Authority were conferred on the National Company Law Tribunal in respect of corporate persons. The Code aims at resolution of stressed assets by a comprehensive mechanism, including taking over of assets and management of the corporate debtor by the Interim Resolution Professional. The Corporate Insolvency Resolution Process (the “CIRP”) was, rightly or wrongly, considered onerous by the corporate debtors. The Finance Minister, in a different context, has already hinted on suspending provisions of Sections 7, 9 and 10 of the Code. (Press conference by the Finance Minister on 24 March 2020.) However, during the period of Covid-19, its avoidance has become the need of the day. We make a humble attempt to suggest some measures herein.
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