Parliament passes amendments to IBC
National  
economictimes

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.

 

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.
 

 
 


 
 


 
More in National
Azim Premji of Wipro donates more than Rs 50,000 crores to charity

GUWAHATI: Wipro founder chairman and managing director Azim H Premji has decided to make another humongous philanthropic contribution by donating R...

Recently posted . 2 views

PM interacts with Radio Jockeys

Prime Minister Shri Narendra Modi today interacted with Radio Jockeys (RJs) via video conference.

Recently posted . 10 views

Why Jyotiraditya Scindia, Friends With Rahul Gandhi Since Age 4, Cross...

The Gandhis kept believing that either BJP would not take a dynast or Jyotiraditya Scindia would not cross the laxman rekha. But Scindia turned out to be a kite who...

Recently posted . 20 views

Coronavirus: Officially or unofficially, India in lockdown, restrictio...

NEW DELHI: Even as the day-long nationwide “janata curfew” called for by Prime Minister Narendra Modi drew to a close on Sunday evening...

Recently posted . 19 views

Who is a Kashmiri? Centre defines new rules for the domicile of Union ...

The special status of Jammu and Kashmir was abrogated in August and the state was bifurcated into two Union Territories - Jammu and Kashmir and Ladakh.

Recently posted . 23 views

Nizamuddin coronavirus cluster: What was Jamaat thinking?

The Centre imposed a ban on travellers from Indonesia and Malaysia—the bulk of the Jamaat's foreign visitors were from here—much too late even thoug...

Recently posted . 21 views

 
 
 

Prashnavali

Thought of the day

“Always be a first-rate version of yourself instead of a second-rate version of someone else.”
Judy Garland