Parliament Passes Insolvency & Bankruptcy Code Amendment Bill

On Tuesday, the 2nd of January, Finance Minister Arun Jaitley said that the government has entered into an unchartered territory as far as bankruptcy and insolvency Code is concerned and would continue to modify the law dealing with the issue, reported PTI.

The Insolvency and Bankruptcy Code Amendment Bill, was approved by the Rajya Sabha through a voice vote, yesterday. The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill was passed by the Lok Sabha last week.

In the debate over the bill, Jaitley said, ""Insolvency and bankruptcy is an area in which it is only in the recent years that we have chartered into. It is a learning experience,". The bill seeks to replace an ordinance which was promulgated in November to prevent unscrupulous persons from misusing or vitiating the provisions of the Insolvency and Bankruptcy Code (IBC).

The bill objective is to allow creditors to move to the National Company Law Tribunal (NCLT) in case of insolvency.