Lok Sabha passes bill to amend insolvency law without debate

The Lok Sabha on Wednesday passed the IBC (amendment) Bill without debate, which, among other things, provides for a pre-packaged resolution process for stressed MSMEs.

Minister of State for Corporate Affairs Rao Inderjit Singh moved the Bill for consideration and passage amid the din. The Bill was approved by the House without any discussion, as Opposition members continued their protest over Pegasus snooping issue and three new farm laws.

Singh said the Insolvency and Bankruptcy Code (Amendment) Bill, 2021, will replace the Ordinance that was promulgated on April 4 as part of efforts to provide relief to MSMEs adversely impacted by the pandemic. The proposed amendments would enable the government to notify the threshold of a default not exceeding Rs 1 crore for initiation of the pre-packaged resolution process. The government has already prescribed the threshold of Rs 10 lakh for this purpose.