Parliament has passed the Insolvency and Bankruptcy Code Bill 2019 with Lok Sabha approving it today.
The Rajya Sabha has earlier approved the Bill. The Bill is aimed at providing greater clarity on permissibility of corporate restructuring schemes, clarity on rights and duties of authorised representatives of voters.
The amendments give committee of creditors of a loan defaulting company, explicit authority over the distribution of proceeds in the resolution process and fixes a firm timeline of 330 days for resolving cases.
Replying to questions raised by the opposition members, Finance and Corporate Affairs Minister, Nirmala Sitharaman said the spirit of the law is not to let the companies die. She said liquidation is not the sole agenda of the law and it has to provide resolution process.
The minister said there are other means available to see how the company can be revived. She said the government has increased the benches of the National Company Law Tribunal from 10 to 15 in the last one year and also providing training to the members as part of capacity building for speedy disposal of cases.