New Delhi, Jul 28 (UNI) The Lok Sabha on Wednesday passed The Insolvency and Bankruptcy
Code (Amendment) Bill, 2021 by voice vote and without discussion amid ruckus by the Opposition over various issues, including Pegasus row and new farm laws.
Amid din, Minister of State for Corporate Affairs Rao Inderjit Singh, who moved the Insolvency and Bankruptcy Code (Amendment) Bill 2021 for consideration and passing, said the Bill replaces Insolvency and Bankruptcy Code (Amendment) Ordinance 2021.
The Bill was passed by the Lok Sabha by voice vote and without discussion amid ruckus by the
Opposition over various issues, including Pegasus row and new farm laws.
Union Finance Minister Nirmala Sitharaman on Monday introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 in the Lok Sabha amid strong disruptions by the members of the Opposition.
The ordinance that seeks to amend the Insolvency and Bankruptcy Code (IBC), 2016 was promulgated through a gazette notification by President Ram Nath Kovind on April 4.
Insolvency is a situation where individuals or companies are unable to repay their outstanding debt.
Under the ordinance, a pre-packaged insolvency resolution process (PIRP) was introduced that provides an alternate insolvency resolution process for MSMEs.
At the time of promulgation, the government had said that they considered expedient to provide an efficient alternative insolvency resolution process for corporate persons classified as MSMEs under the Insolvency and Bankruptcy Code, 2016, ensuring quicker, cost-effective and value maximising outcomes for all the stakeholders, in a manner which is least disruptive to the continuity of their businesses and which preserves jobs.
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