The Bill key features include as Status of allottees; Representative of financial creditors; The voting threshold of the committee of creditors; Ineligibility to be resolution applicant; Applicability of Code to Micro, Small, and Medium Enterprises (MSMEs) and Withdrawal of submitted applications
Updated By: LatestGKGS Desk
Lok Sabha passed Insolvency and Bankruptcy Code 'Amendment' Bill 2018: Details
Lok Sabha passed Insolvency and Bankruptcy Code 'Amendment' Bill 2018: Details, Highlights
Lok Sabha has passed Insolvency and Bankruptcy Code 'Amendment; Bill 2018 to bring relief to the home buyers and Micro, Small and Medium Enterprises (MSMEs).
The Bill replaces the ordinance promulgated in this regard and amends the Insolvency and Bankruptcy Code 2016.
The Bill Insolvency and Bankruptcy Code (IBC), 2016 provides a time-bound process to the resolution of insolvency among companies and individuals. Insolvency is a situation where an individual or company is unable to repay their outstanding debt.
The government of India in November 2017 had set up Insolvency Law Committee to review IBC and identify issues in its implementation and suggest changes.
The Committee had made several recommendations such as exempting MSMEs from certain provisions of IBC, treating allottees under real estate project as financial creditors, reducing voting thresholds of the committee of creditors (CoC), among others. Subsequently, President had promulgated Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 in June 2018 after approval of Central Government.
