Lok Sabha Passes Insolvency And Bankruptcy Code Bill (Photo Credit: File Photo/Twitter)
Lok Sabha on Friday passed the Insolvency and Bankruptcy Code (Second Amendment) Bill amid noisy protests. 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.
Finance Minister Nirmala Sitharaman sought the cooperation of the members to pass the Bill in the House. The Bill was declared passed by Rajendra Agarwal, who was in the chair, amidst continuous protests by Congress members, who have been demanding a discussion on the riots in Delhi.
The amendments in the law seek to remove bottlenecks and streamline the corporate insolvency resolution process, wherein successful bidders will be ring-fenced from any risk of criminal proceedings for offences committed by previous promoters of companies concerned.
The Insolvency and Bankruptcy Code, which came into force in 2016, has already been amended thrice. The latest changes pertain to various sections as well as introduction of a new section.