scorecardresearch
Friday, March 29, 2024
Support Our Journalism
HomeEconomyLok Sabha passes amendments to Insolvency and Bankruptcy Code Bill

Lok Sabha passes amendments to Insolvency and Bankruptcy Code Bill

The amendments to the bill include strengthening the position of financial creditors and completing the Corporate Insolvency Resolution Process in 330 days.

Follow Us :
Text Size:

New Delhi: Lok Sabha on Thursday passed amendments to the Insolvency and Bankruptcy Code, with the government asserting that the spirit behind the law is not to allow companies to die.

The amendments to the bill include strengthening the position of financial creditors and reversing an order that had sought to provide the dissenting unsecured financial creditors and operational creditors fair and equitable treatment in the resolution process.

Rajya Sabha has already passed the bill and with its passage in the lower house, the Insolvency and Bankruptcy Code is set to be amended.

Responding to the debate on the bill, Finance and Corporate Affairs Minister Nirmala Sitharaman said the liquidation of a company is not the sole agenda of the Insolvency and Bankruptcy Code.

As many as seven sections of the Code are to be amended.

Once the Corporate Insolvency Resolution Process (CIRP) begins, it has to be completed in 330 days, including litigation stages and judicial process, the minister said, citing proposed amendments.


Also read: Relief for banks as Modi govt moves to reform Insolvency and Bankruptcy Code


 

Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular