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Modi Cabinet clears path for changes in Insolvency and Bankruptcy Code

The amendments  seek to ring-fence corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings in offences of previous management. 

Published: 12th December 2019 10:11 AM  |   Last Updated: 12th December 2019 10:11 AM   |  A+A-

The proposed seven amendments, cleared by the Cabinet earlier this week, aim at improving the effectiveness of the bankruptcy law.

Representational image (Photo | Reuters)

By Express News Service

NEW DELHI: The Union Cabinet on Wednesday gave its nod to a legislative proposal to further amend the Insolvency and Bankruptcy Code (Second Amendment) Bill to ramp up expeditious resolutions for boosting investment in financially distressed sectors.“Amendments to the IBC are aimed to remove bottlenecks and protect last mile funding to boost investment in financially distressed sectors. Additional thresholds are being introduced for financial creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of Corporate Insolvency Resolution Process (CIRP),” the government said in a media statement. 

The amendments seek to ring-fence corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings in offences of previous management. In another decision, the Cabinet gave nod to the Aircraft (Amendment) Bill, 2019.  “The amendments would fulfill the requirements of International Civil Aviation Organisation (ICAO). This will enable the three regulatory bodies in the Civil Aviation sector in India to become more effective, which will lead to enhancement in the level of safety and security of aircraft operations,” a government said.

The Cabinet Committee on Economic Affairs (CCEA) gave approval for extension of timeline up to March 31, 2022 for approved components of PM’s Development Package (PMDP) for development of horticulture in Jammu and Kashmir and Ladakh under Mission for Integrated Development of Horticulture.The action plan under PMDP has been modified within the approved outlay of `500 crore earmarking `39.67 crore for UT of Ladakh and `460.33 crore for UT of Jammu and Kashmir.



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