Date Confusion in Insolvency Ordinance
Insolvency Suspension Ordinance
As per the first moratorium given, RBI permitted Lenders to grant a moratorium on payment of Loan repayment instalments falling due between March 1, 2020 and May 31, 2020. But the insolvency suspension ordinance says that one can initiate insolvency proceedings in respect of defaults that occurred prior to March 25, 2020.
So what will happen to instalments that fell due between 1st March & 25th March 2020 but not paid on due dates? Will it be considered default for insolvency proceedings initiation or will be given the benefit of moratorium by RBI?
Clarity is needed from both RBI and IBBI
Regards
Viswanathan
Retired Banker
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