New Delhi, Sept. 19 -- The Rajya Sabha on Saturday passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, whereby fresh insolvency proceedings against companies or individuals will not be initiated for at least 6 months starting March 25.

The Bill mandates that a default on any repayments from March 25, when a nationwide lockdown was imposed to curb the spread of coronavirus, will be not considered for initiating insolvency proceedings for at least six months.

Replying to the debate on the Bill in the House, Finance Minister Nirmala Sitharaman said its intention was to keep companies a "going concern" and not liquidate them.

The IBC code pertains to timely resolution of cases pertaining to insolvent companies and indi...