RAJYA SABHA PASSES INSOLVENCY AND BANKRUPTCY CODE (2nd Amendment) BILL, TEMPORARILY SUSPENDING INITIATION OF CORPORATE INSOLVENCY RESOLUTION PROCESS

The Rajya Sabha today adopted an amendment to the Insolvency and Bankruptcy Code Bill, 2020 by voice vote after rejecting opposition amendments. Replying to a brief discussion, Finance Minister Nirmala Sitharaman justified the promulgation of the ordinance saying that the step was necessitated in view of COVID-19 pandemic situation. She said, there were apprehensions that the country’s economy was likely to be adversely affected. The Finance Minister said, the government had settled thousands
of disputed cases involving several lakh crores of rupees without any dissent. She said, the Insolvency Bankruptcy Code (IBC) Bill is helping to resolve the dispute much before it is entering the NCLT. This is due to the ecosystem created because of the IBC. The Minister said, the number of disposed cases even before admission in NCLT, as of 31st of July 2020 related to Section 7 is 2,789 company cases, whereas the amount is over
Rs 1.96 lakh crore. She said, under Section 9, 11,581 cases have been disposed of whereas under Section 10- 140 cases disposed of amounting to Rs 1.53 lakh crore.

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