{"id":223215,"date":"2019-12-12T16:04:44","date_gmt":"2019-12-12T10:34:44","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=223215"},"modified":"2021-07-30T09:43:31","modified_gmt":"2021-07-30T04:13:31","slug":"cabinet-approves-insolvency-and-bankruptcy-code-second-amendment-bill-2019-amendments-would-further-ease-doing-of-business","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/12\/cabinet-approves-insolvency-and-bankruptcy-code-second-amendment-bill-2019-amendments-would-further-ease-doing-of-business\/","title":{"rendered":"Cabinet approves Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019; Amendments would further ease doing of business"},"content":{"rendered":"<p style=\"text-align: justify;\">The Union Cabinet has approved the proposal to make amendments in the Insolvency and Bankruptcy Code, 2016 (code), through the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019.<\/p>\n<p style=\"text-align: justify;\">The <strong>amendments aim to remove certain difficulties being faced during the insolvency resolution process to realise the objects of the code and to further ease doing of business.<\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Details of the Proposal<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The Amendment Bill seeks to amend Sections 5(12), 5(15), 7, 11, 14, 16(1), 21(2), 23(1), 29A, 227, 239, 240 and insert new Section 32A in the Insolvency and Bankruptcy Code, 2016 (Code).<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Impact<\/strong><\/span><\/p>\n<ol>\n<li style=\"text-align: justify;\">Amendments to the Code to remove bottlenecks, streamline the CIRP and protection of last-mile funding will boost investment in financially distressed sectors.<\/li>\n<li style=\"text-align: justify;\">Additional thresholds introduced for Financial Creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of the Corporate Insolvency Resolution Process (CIRP).<\/li>\n<li style=\"text-align: justify;\">Ensuring that the substratum of the business of the corporate debtor is not lost, and it can continue as a going concern by clarifying that the licenses, permits, concessions, clearances, etc. cannot be terminated or suspended or not renewed during the moratorium period.<\/li>\n<li style=\"text-align: justify;\">Ring-fencing corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings against offences committed by previous management\/promoters.<\/li>\n<\/ol>\n<hr \/>\n<p><strong>Cabinet<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Press Release dt. 11-12-2019]<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Source: PIB]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet has approved the proposal to make amendments in the Insolvency and Bankruptcy Code, 2016 (code), through the Insolvency and <\/p>\n","protected":false},"author":8808,"featured_media":209514,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,13],"tags":[38843,38842,17021],"class_list":["post-223215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-statutes","tag-ease-doing-of-business","tag-insolvency-and-bankruptcy-code-second-amendment-bill-2019","tag-insolvency-resolution-process"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cabinet approves Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019; 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