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Following the UK Government extending the restrictions on winding up petitions until 30 June 2021 it is useful to note two recent cases that have considered the coronavirus test that currently applies to winding up petitions.

On March 8, 2021, Hon’ble Supreme Court delivered a judgement highlighting the need for the Legislature to provide clarity on the validity of ipso facto clauses in India in the context of insolvency laws. The Hon’ble Court, being well aware of its remit, adopted a ‘workable formula’, applicable only in the given factual matrix, to address the issue in question and did not encroach the legislature’s role in formulating a policy with respect thereto. In fact, the Hon’ble Court has put forth a series of questions for consideration before the lawmakers regarding the validity of ipso facto clauses.

The object of this article is to analyze the implication of the increase in threshold for invoking The Insolvency and Bankruptcy Code (IBC). It further looks into some of the burning legal questions that have emerged in the aftermath of the increase and how Tribunals and Courts across the country have decided upon them.