Govt to bring ordinance to amend insolvency law

Tribune News Service

New Delhi, December 24

The government will promulgate an ordinance to further amend the insolvency law to remove ambiguities and ring-fence successful bidders from prosecution for offences committed by previous promoters of corporates concerned.

The Union Cabinet today approved an ordinance to amend the Insolvency and Bankruptcy Code (IBC), 2016, that would also help in ensuring smooth implementation of the law, according to an official statement.

The Code has already been amended thrice and a bill to amend it was introduced in the Lok Sabha on December 12.

Briefing reporters after the Cabinet meeting on Tuesday, Union Minister Prakash Javadekar said the amendments would also help bring more clarity and facilitate FDI.

“Under the amendments, the liability of a corporate debtor for an offence committed prior to the commencement of the corporate insolvency resolution process shall cease,” the statement said.