New Delhi, Mar 12 () Parliament on Thursday passedamendments to the insolvency law that will help ring-fencesuccessful bidders of insolvent companies from risk ofcriminal proceedings for offences committed by previouspromoters.
The Insolvency and Bankruptcy Code (Amendment) Bill, 2020was passed by voice vote in Rajya Sabha. It was approved byLok Sabha on March 6.
The Bill replaces an ordinance.
Replying to a short debate on the bill, Finance MinisterNirmala Sitharaman said amendments are sync with time and alsoadhere to a Supreme Court order in "letter and spirit".
The minister said need for amendment in the IBC arosebecause of "changing requirement" and "requirement of finetunning" the law as several MPs wanted to know why thegovernment was bringing in so many amendments to a new law.
Stressing that the government is "very responsive" andhas been talking to the industry, she assured the House thatamendments to the IBC are are not being "unthinkingly done".
The IBC, which came into force in 2016, has already beenamended thrice.
Sitharaman said the government was taking care of theinterest of home buyers and the requirement of minimum numberof home buyers in the IBC has been included to avoid"frivolous litigations".
The bill seeks to remove bottlenecks and streamline thecorporate insolvency resolution process. It aims to provideprotection to new owners of a loan defaulter company againstprosecution for misdeeds of previous owners.
The latest changes pertain to various sections of the IBCas well as introduction of a new section. NKD MJHDV DV
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