December 18, 2019
Amendments in the IBC Code will further enhance ease of doing business in the country: PHD Chamber
Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry, has congratulated the Union Cabinet for its approval for amendments in the Insolvency and Bankruptcy Code (IBC), 2016 to streamline the IBC Code and further enhance ease of doing business in the economy.
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).
Changes in the Insolvency & Bankruptcy laws have been the long-standing demand of the industry as the move will help safeguard corporate debtors, protect last mile funding, boost investments in financially distressed sectors, speed-up CIRP process, strengthen the overall IBC framework and further ease doing of business, said Dr Aggarwal.
The amendment aims to remove various difficulties faced during the Corporate Insolvency Resolution Process (CIRP). The protection of corporate debtor resolved under the IBC in favour of a successful resolution applicant against offences committed by previous management will fast-track the resolution process. This will also attract more bidders/resolution applicants to come forward and bid for stressed assets by boosting their confidence in the IBC process, said Dr Aggarwal.
In a move to provide relief to stressed assets and make them value proposition for the acquirers, the cabinet has ensured that the business of corporate debtor 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, said Dr Aggarwal.
The additional thresholds have also been proposed for Financial Creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of (CIRP). Going ahead, we expect the early approval of the amendments in the Insolvency and Bankruptcy Code in the parliament, said Dr Aggarwal.
PHD Chamber of Commerce and Industry