New Delhi, Aug 3 (UNI) Amid massive uproar by Opposition members, the Rajya Sabha on Tuesday passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 which provides a quicker and cost-effective insolvency resolution process for micro, small, and medium enterprises (MSMEs).
The Lok Sabha has already passed the Bill thus paving the way for the Bill to become law.
The Bill which replaces the IBC Amendment Ordinance promulgated by the President on April 4, 2021 provides pre-packaged insolvency resolution process (PIRP) for corporate debtors.
Moving the Bill in the Upper House, Finance Minister Nirmala Sitharaman said that the Bill has been brought keeping in mind the situation in which MSMEs require a lot of help post the pandemic.
Explaining the benefits of the PIRP, the Minister said that by this mechanism there will be a better way in which MSMEs can seek to have a solution.
"It is less costly.… It is hybrid in nature. ..The debtor will still be in control and the creditors will be working together and, therefore, it is actually going to cut the cost and speed up the process because the whole thing will be over in 120 days," she said.
Speaking on the Bill, BJD MP Amar Patnaik welcomed the pre-pack arrangement.
"..it is very welcome. The only thing is that we need to build the capacity of our resolution professionals, we need to build the capacity of NCLT," he said.
TRS MP Banda Prakash also supported the bill during the brief discussion while protests by many Opposition members continued.
M Thambidurai, Rajya Sabha member from AIADMK, welcomed the Bill saying it offers flexibility, debtor-in-possession, minimum disruption in the business and continuation of the business relations.
MP John Brittas opposed the Bill saying it will destroy the economy of the country.
Replying to the members on the debate, Finance Minister Sitharaman said that the pre-package is flexible, cost effective, time bound and, therefore, very suitable for the MSMEs.
UNI NK SHK1941