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12/03/2020 10:16am

Parliament passes Insolvency and Bankruptcy Code (Amendment) bill 2020

image Parliament passes Insolvency and Bankruptcy Code (Amendment) bill 2020

New Delhi, Mar 12 (KNN) The parliament on Thursday passed amendments to the Insolvency and Bankruptcy Code (IBC) through voice vote in Rajya Sabha.

The bill was already passed by the Lok Sabha on March 6.

Replying to a discussion, Finance Minister Nirmala Sitharaman said, ''the amendments are periodic but brought thoughtfully and in sync with requirements of time. It is in letter and spirit with the Supreme Court's judgment.''

''The need for amendment in the IBC arose because of “changing requirement” and “requirement of fine tuning” the law as several MPs wanted to know why the government was bringing in so many amendments to a new law,” she asserted.

She emphasized on the importance of the ordinance before the bill and said that it was needed to avoid any hiatus. She said, as on 1st January of this year, out of around 43 thousand cases disposed of by National Company Law Tribunal (NCLT), nearly 15 thousand cases were resolved based on Insolvency and Bankruptcy Code.

Sitharaman asserted that the government is committed to protect the right and security of every home buyer.

The Bill seeks to amend the Insolvency and Bankruptcy Code (IBC) so that successful bidders of insolvent companies are ring-fenced from any risk of criminal proceedings for offences committed by previous promoters of the companies concerned.

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




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