New Delhi (NVI): The Union Cabinet chaired by Prime Minister Narendra Modi today approved the proposal to make amendments in the Insolvency and Bankruptcy Code, 2016 (code) through the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019.
The amendments aim to remove certain difficulties being faced during insolvency resolution process to realise the objects of the code and to further ease doing of business.
The Amendment Bill seeks to insert new section 32A in the Insolvency and Bankruptcy Code, 2016 (Code).
Besides, amendments in sections 5(12), 5(15), 7, 11, 14, 16(1), 21(2), 23(1), 29A, 227, 239, 240 were also approved.
The approved amendments are aimed at removing bottlenecks, streamlining of the Corporate Insolvency Resolution Process (CIRP) and protection of the last mile funding to boost investment in financially distressed sectors.
Also, additional thresholds is introduced for the financial creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of CIRP.
