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The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 05-06-2020 No Case be Filed Due to Covid Pandemic

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 05-06-2020 No Case be Filed Due to COVID Pandemic

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 5th June, 2020/Jyaishtha 15,  1942  ( Saka)

THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ORDINANCE,  2020

No. 9 OF 2020

Promulg ated by  the  President  in the  Seventy -first Year of the Republic of India.

An Ordinance further to amend the Insolvency and Bankruptcy  Code, 2016.

WHEREAS the entire ecosystem for implementation of the Insolvency and Bankruptcy Code, 2016 is in place;

AND WHEREAS the prov1s10ns relating to corporate insolvency resolution process and liquidation process for corporate persons under the Code are in operation;

AND WHEREAS COVID-19 pandemic has impacted business, financial markets and economy all over the world, including India, and created uncertainty and stress for business for reasons beyond their control;

AND WHEREAS   a nationwide lockdown is in force since

25th March, 2020 to combat the spread of COVID-19 which has ailedtodisruption of normal business operations;

AND WHEREAS it is difficult to find adequate number of resolution applicants to rescue the corporate person who may default in discharge of their debt obligation;

AND WHEREAS it is considered expedient to  suspend under sections 7, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 to prevent corporate persons which are experiencing distress on account of unprecedented situation, being pushed into insolvency proceedings under the said Code for some time;

AND WHEREAS it is considered expedient to exclude the defaults arising on account of unprecedented situation for the purposes  of insolvency proceeding under this code;

AND WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action;

Now, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:-

Short title and commencement.

Insertion of new section 1OA.

Suspension of initiation of corporate insolvency resolution process.

  1. (1) This  Ordinance   may  be   called  the  Insolvency and Bankruptcy  Code (Amendment)  Ordinance,

(2) It shall come into force at once.

  1. After section I0 of the principle Act, the following section shall be inserted, namely:-

“lOA. Notwithstanding anything contained in sections 7, 9 and 10, no application for initiation of corporate insolvency resolution process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 for a period of six months or such further period, not exceeding one year from such date, as may be notified in this behalf:

Provided that no application shall ever be  filed  for initiation of corporate insolvency resolution process of a corporate debtor for the said default occurring during the said period.

Explanation-For the removal of doubts, it is hereby clarified that the provisions of this section shall not apply to any default committed under the said sections before 25th March, 2020.”

Amendment of section 66.

_ 3.  In  section  66  of  the  principal  Act,  after  sub-section (2), the following subsection shall be inserted, namely:-

“(3) Nothwithstanding anything contained in this section, no application shall be filed by a resolution professional under sub-section (2), in respect of such default against which initiation of corporate insolvency resolution process is suspended as per section 1OA.”

RAM NATH KOVIND ,

President.

  1. G. NARAYANA RAJU,

Secretary  to the  Govt. of  India.

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NCLT ORDER 2 Lacs penalty for accounts not legibly scanned

NATIONAL COMPANY LAW TRIBUNAL
NEW DELHI BENCH
NEW DELHI
C.P.NO. 16/119/16
CA. NO.
PRESENT: SMT. INA MALHOTRA
Hon’ble Members (J)

 

NATIONAL COMPANY LAW TRIBUNAL
NEW DELHI BENCH
NEW DELHI
C.P.NO. 16/119/16
CA. NO.
PRESENT: SMT. INA MALHOTRA
Hon’ble Members (J)

ATTENDANCE-CUM-ORDER SHEET OF THE HEARING OF NEW DELHI BENCH OF THE NATIONAL COMPANY LAW TRIBUNAL ON 7.10.2016
NAME OF THE COMPANY: M/s MVM Metal and Alloys Pvt. Ltd.
SECTION OF THE COMPANIES ACT: 621A

ORDER

The petitioner company, which was incorporated on 29.05.2007, has filed the present compounding application having been charged with the offence under section 220 of the Companies Act, 1956. Though the company filed its annual report for the financial year 2011-12 along with Board’s report dated 01.09.2012 during its scrutiny it was observed that the financial accounts for the year ending 2011-12 were not legible and hence not accepted.
2. It is submitted by the petitioner that the alleged non compliance was totally unintentional and without any malafide intention, on account of bad quality of scanning. On being put to notice, physical copies were submitted in the office of the RoC.
3. The offence is punishable u/s 162 of the Comapanies Act, 1956 which provides for an imposition of fine whcih may extend to Rs. 500/- for each day’s default.
4. Accordingly, the office of the Roc has calculated and recommended the imposition of the maximum fine of Rs. 5,83,500/– on the petitioner company and its three directors till resubmission of the documents in hard copy on 03.12.2013.
5. As per the report, prosecution has not been initiated.
6. Given the facts of the case as there is no legal impediment in compounding, the offence and the fact that the said default appears to be unintentional, it would be sufficient to impose a fine of Rs. 50,000/- on each of the petitioners, i.e. the company and its below mentioned three directors. Accordingly, the fine is imposed as under for the entire period of default.
Name of the Applicant Penalty
M/s. M V M Mettal & Alloys Pvt. Ltd. Rs. 50,000/-
Mr. Vijay Singla, Director Rs. 50,000/-
Mr. Ajay Budhiraja, Director Rs. 50,000/-
Ms. Pooja Gupta, Director Rs. 50,000/-
Total Rs. 2 Lacs

7. Subject to the remittance of the aforesaid fine within 30 days, the offence shall stand compounded. Compliance Report be placed on record with due intimation to the office of the RoC.
8. Petition stands disposed off in terms of the above and consigned to Record Room.