Bill to amend insolvency and bankruptcy code introduced in Lok Sabha

A bill was introduced in the Lok Sabha on Thursday which seeks to remove bottlenecks, streamline the Corporate Insolvency Resolution Process (CIRP) and protection of last-mile funding to boost investment in financially distressed sectors.

The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 was introduced by Finance Minister Nirmala Sitharaman.

Opposition members including Adhir Ranjan Chowdhury of Congress and Saugata Roy of Trinamool Congress opposed the introduction of the bill saying not enough time has been given to study it according to the norms.

Speaker Om Birla said he had agreed to the request to the Minister for the introduction of the bill as only two days were left for the conclusion of the winter session.

Sitharaman said an amendment bill was brought in July and a second amendment bill was being brought as there were some doubts in the minds of homebuyers.

She also asked opposition members to avoid "contempt and sarcasm" for industry, saying they were job creators and operate in accordance with the law.

The bill was approved by the union cabinet on Wednesday.

The bill introduces additional thresholds for financial creditors represented by an authorized representative in order to prevent frivolous triggering of CIRP.

It seeks to ensure that the substratum of the business of the corporate debtor is not lost, and it can continue as a going concern by clarifying that the licenses, permits, concessions, and clearances cannot be terminated or suspended or not renewed during the moratorium period.