The Lok Sabha on Monday passed the Insolvency and Bankruptcy Code (Amendment) Bill during the Parliament Budget Session. Finance Minister Nirmala Sitharaman replied to the discussion on the bill, which was sent back by the ‘Select Committee’.
Sitharaman informed that the bill replaces the underutilised fast-track process, which was essentially a Corporate Insolvency Resolution Process (CIRP) with a reduced timeline for small companies. The Bill has proposed 12 amendments to the IBC, which came into force in 2016.
Also read: IBC reforms: Government moves to fix insolvency delays
“The earlier framework was not fully utilised. It is now being replaced by a new creditor-initiated insolvency framework featuring out-of-court settlements,…