New Delhi: The Insolvency and Bankruptcy Code (Amendment) Bill,2021 was passed in Rajya Sabha on Tuesday amid ruckus by Opposition parties. The Bill was passed through voice vote.
While moving the motion for consideration of the Bill, Union Minister of Finance Nirmala Sitharaman said the Bill would cut the cost and speed up the process for micro, small and medium enterprises (MSMEs) in insolvency resolution. The MSMEs would get relief as the process would get over in 120 days. Sitharaman also said there is no surge in the insolvency of MSMEs, contrary to the expectation after suspension of IBC amid Covid, she said.
The Bill was passed in the Lower House on July 28, 2021. The Bill amends the Insolvency and Bankruptcy Code, 2016. Termed the pre-packaged insolvency resolution process (PIRP), the Bill introduces an alternate insolvency resolution process for MSMEs. The Code directs a time-bound process for resolving the insolvency of corporate debtors (within 330 days) called the corporate insolvency resolution process (CIRP).
Meanwhile, the Opposition created uproar in the Parliament and some of the MPs swelled the Well of the House. Opposition parties have been pressing on Pegasus row, farm laws, Covid crisis since the commencement of the Monsoon Session. Vociferous sessions kicked off after Union Minister of IT Ashwini Vaishnaw's statement that the media report on Pegasus row was an attempt to malign Indian democracy. The session commenced on July 19 and is scheduled to end on August 13.
Also read: As Opposition swells the Well of the House, Rajya Sabha adjourned for the day
