Protecting The Health Of Businesses During Covid-19: A Legal Analysis Of The Reforms

Protecting The Health Of Businesses During Covid-19: A Legal Analysis Of The Reforms To The Insolvency And Bankruptcy Code, 2016 In India

Adv. Gaurav Puri, Advocate at The Delhi High Court

ABSTRACT

The outbreak of the Novel Coronavirus has severely affected the economy and the financial health of businesses across the world amidst the disruption of supply chains and logistical issues, negligible cash flows, dynamic economic effects on different industries on account of the nature of business/trade and the staggered periods of lockdown measures leading to a total shutdown of business activities considering the effect of new waves of the virus. Across the world we are witnessing proactive government measures vis-à-vis Corporate and Financial Legislative Reforms with the twin objective of protecting viable businesses and industries along with an effort to soften the economic blow faced by these companies. In light of the above-mentioned, this research paper aims to provide an insight into the amendments made to the Insolvency and Bankruptcy Code, 2016 by the Government of India as a mitigating measure in the wake of the Novel- Coronavirus whilst assessing the co-relation between the reforms to the Legislations analysed above with the overall changes to the corporate and financial policy measures undertaken by the Indian Institutions. The paper concludes by providing a way forward in light of the current stage of the pandemic by adopting a predictive and comparative study.