The Insolvency and Bankruptcy Code (Amendment) Bill, 2017 was passed by the Lok Sabha on Dec 29, 2017. On Jan 2, 2018, the bill was approved by the Rajya Sabha through a voice vote. The Insolvency & Bankruptcy Code Amendment Bill seeks to replace an ordinance which was promulgated in November to prevent unscrupulous persons from misusing or vitiating the provisions of the Insolvency and Bankruptcy Code.
The ineligible persons or entities will include undischarged insolvent, wilful defaulter and those whose accounts have been classified as a non-performing asset. These persons, however, can become "eligible to submit a resolution plan" if they clear all the overdue amounts with interest and other charges relating to their NPA accounts.
The objective of the bill is to allow creditors to move to the National Company Law Tribunal (NCLT) in case of insolvency. The FM Mr. Arun Jaitely said that large pending cases are broadly in two categories - one with large assets, functional plants and factories and the other are either trading companies or EPC companies with little assets.
For more information, please visit http://ddinews.gov.in/national/parliament-passes-insolvency-bankruptcy-code-amendment-bill