Cabinet clears amendments to insolvency law

Advertisements
Loading...

According to the release, the amendments would remove bottlenecks, streamline the corporate insolvency resolution process and that protection of last mile funding would boost investment in financially-distressed sectors.

PTI|

Loading...

Updated: Dec 11, 2019, 07.06 PM IST

Loading...

BCCL

Loading...
Insolvency Law
Loading...
The IBC (Second Amendment) Bill, 2019, seeks to change various sections as well as insert a new section in the law.

NEW DELHI: The Union Cabinet on Wednesday approved changes to the insolvency law, including provision to ring- fence successful resolution applicants from criminal proceedings with regard to offences committed by previous promoters of a company.

The amendments to the Insolvency and Bankruptcy Code (IBC) are aimed at removing certain difficulties being faced during insolvency resolution process to realise the objects of the Code and to further ease doing of business, an official release said.

The IBC (Second Amendment) Bill, 2019, seeks to change various sections as well as insert a new section in the law.

Along with the amendments to the insolvency law, the cabinet also gave clearance to many projects.




Major Decisions of the Cabinet



* Approved revision in funding pattern of Phase IV of Delhi Metro.


* Approved pact between India & Japan for strengthening cooperation in steel sector.


* Approved the proposal for increase in authorised capital and equity support to India Infrastructure Finance Company Limited (IIFCL).


* Approves “Partial Credit Guarantee Scheme” for purchase of high-rated pooled assets from financially sound NBFCs/HFCs by PSBs.


* Authorised NHAI to set up Infrastructure Investment Trust and monetize National Highway projects.


* Approved Aircraft (Amendment) Bill to enhance safety and security of aircraft operations; Bill enhances the maximum limit of fine from the existing Rs. 10 lakhs to Rs. 1 Crore.


* Approved Agreement on Social Security between India and Brazil.


* Approves extension by three years and revision of PM’s Development Package for Horticulture in UTs of J&K and Ladakh.


* Approved MoU between India and Japan Coal Energy Centre for cooperation in the field of supply of electricity.

According to the release, the amendments would remove bottlenecks, streamline the corporate insolvency resolution process and that protection of last mile funding would boost investment in financially-distressed sectors.

“Additional thresholds introduced for financial creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of Corporate Insolvency Resolution Process (CIRP),” it added.

In a significant move, there would be ring-fencing of corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings against offences committed by previous management/ promoters.

The amended Act would also ensure that the substratum of the business of corporate debtor is not lost. It can continue as a going concern by clarifying that the licences, permits, concessions, clearances etc. cannot be terminated or suspended or not renewed during the moratorium period, the release said.

Loading...

Also Read

Cabinet clears amendments to insolvency law

Challenges have made insolvency law stronger, says IBBI chief

Govt mulling special window for NBFCs under insolvency law

Insolvency law amendments to ensure greater timeliness: Sitharaman

Government plans debt waiver for ‘small distressed borrowers’ under insolvency law

Commenting feature is disabled in your country/region.

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service

Read More

Loading...

Loading...

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: