NEW DELHI: Days after the Lok Sabha cleared the Insolvency and Bankruptcy Code Bill aimed at checking wilful defaulters and existing promoters from participation in the bidding process of stressed assets of companies undergoing insolvency proceedings, the Rajya Sabha on Tuesday vetted the Bill without amendments. This will pave the way for the Bill to be presented to the President for ascent where after the same will become a law.
“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,” Union Finance Minister Arun Jaitley told the House wrapping up discussion on the Bill in the House.
The Finance Minister also allayed the apprehensions of the Opposition members on certain provisions of the Bill saying the provisions will be modified as and when required to put in place a robust banking system.
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill was passed by the Lok Sabha last week.
Jaitley said the Government has been encountering situations which were not anticipated earlier and assured the House that it would continue to take corrective action to strengthen the banking system.
The Bill seeks to replace an Ordinance which was promulgated on November 23 last year to prevent unscrupulous persons from misusing the provisions of the Insolvency and Bankruptcy Code (IBC).
The Bill bars certain class of persons, including the promoters of insolvent companies from bidding during the insolvency proceedings.
All the Opposition parties supported the Bill while suggesting certain measures but none of them pressed for any amendments. The Bill was cleared by the House through a voice vote.