The Economic Times daily newspaper is available online now.

    Parliament passes amendments to IBC

    Synopsis

    The bill seeks to remove bottlenecks and streamline the corporate insolvency resolution process. It aims to provide protection to new owners of a loan defaulter company against prosecution for misdeeds of previous owners. The latest changes pertain to various sections of the IBC as well as introduction of a new section.

    Bankruptcy-law-1200
    New Delhi: Parliament on Thursday passed amendments to the insolvency law that will help ring-fence successful bidders of insolvent companies from risk of criminal proceedings for offences committed by previous promoters. The Insolvency and Bankruptcy Code (Amendment) Bill, 2020 was passed by voice vote in Rajya Sabha. It was approved by Lok Sabha on March 6.

    The Bill replaces an ordinance.

    Replying to a short debate on the bill, Finance Minister Nirmala Sitharaman said amendments are sync with time and also adhere to a Supreme Court order in "letter and spirit".

    The minister said need for amendment in the IBC arose because of "changing requirement" and "requirement of fine tunning" the law as several MPs wanted to know why the government was bringing in so many amendments to a new law.

    Stressing that the government is "very responsive" and has been talking to the industry, she assured the House that amendments to the IBC are are not being "unthinkingly done".

    The IBC, which came into force in 2016, has already been amended thrice.

    Sitharaman said the government was taking care of the interest of home buyers and the requirement of minimum number of home buyers in the IBC has been included to avoid "frivolous litigations".

    The bill seeks to remove bottlenecks and streamline the corporate insolvency resolution process. It aims to provide protection to new owners of a loan defaulter company against prosecution for misdeeds of previous owners.

    The latest changes pertain to various sections of the IBC as well as introduction of a new section.


    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News, Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the ET ePaper online.

    ...more
    The Economic Times

    Stories you might be interested in