New Delhi: The Union Cabinet on Tuesday approved an ordinance to further amend the Insolvency and Bankruptcy Code (IBC).
On December 12, the government introduced a bill in the Lok Sabha to amend the Code.
Union minister Prakash Javadekar on Tuesday said the Cabinet has cleared an ordinance to amend the Code.
Cabinet clears ordinance to further amend insolvency law The bill, introduced in the Lok Sabha, seeks to remove bottlenecks and streamline the corporate insolvency resolution process, wherein successful bidders will be ring-fenced from any risk of criminal proceedings for offenses committed by previous promoters of companies concerned.
With the changes, there would be no liability on a corporate debtor for an offence committed prior to commencement of the insolvency resolution process, an official release said.
Further, the corporate debtor would not be prosecuted for any such offence from the date of resolution plan being approved by the adjudicating authority.
Lok Sabha Speaker Om Birla has referred the Insolvency and Bankruptcy Code (Second Amendment) Bill, which seeks to streamline the corporate insolvency resolution process, to the standing committee on Finance of which former prime minister Manmohan Singh is a member.
The committee, chaired by BJP MP and former minister of state for Finance Jayant Sinha, has been asked to examine and submit the report on the bill within three months.
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