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Ordinance to amend IBC
November 24 , 2017
2587 days
1240
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- President has given his assent to the ordinance after the Union Cabinet has approved the proposal to promulgate an ordinance under Article 123 of Constitution to make certain amendments in the Insolvency and Bankruptcy Code (IBC).
- Ministry of Finance says that the ordinance amends sections 2, 5, 25, 30, 35 and 240 of the Code, and inserts new sections 29A and 235A. The ordinance will be presented during the Winter Session of Parliament.
- The newly included Section 29A of the ordinance makes certain persons, including wilful defaulters and those who have their accounts classified as non-performing assets for one year or more, ineligible to participate in a IBC resolution’s auction process.
- The Code, which became operational in December last year, provides for a market-determined and time-bound insolvency resolution process.
- It is implemented by the Ministry of corporate affairs.
- The Ministry of corporate affairs has already set up a 14- member committee to identify and suggest ways to address issues faced in implementation of the law.
- The Insolvency Law Committee, chaired by Corporate Affairs secretary Injeti Srinivas, will take stock of the implementation of the Code.
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