The Insolvency and Bankruptcy (Amendment) Bill 2020 was passed by the Lok Sabha on 6 March 2020, following the report of the Standing Committee on Finance (2019-20).
The Insolvency and Bankruptcy (Second Amendment) Bill 2019 was introduced in the Lok Sabha on 12 December 2019, followed by an Ordinance on 28 December 2019. The attached comparative table of amendments provides the section wise amendments made under the 2019 Bill (now 2020 Bill) and the Act. The significant changes are as under:
Ring fencing of the Corporate Debtor post its resolution from criminal proceedings for offences committed by previous management and promoters;
Maintaining of the licenses, permits, concessions, clearances etc of the CD during the period of moratorium, to enable it to continue as a going concern;.
Additional thresholds for home buyers /Financial Creditors to prevent frivolous triggering of the resolution process for small amounts. The Financial Creditors to be represented by an authorized representative due to their large numbers.
The insolvency commencement date is the date of admission of an application for initiating CIRP under section 7, 9 or 10 as the case may be.
To refer to the Insolvency and Bankruptcy (Amendment) Bill 2020 as passed, click here.
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