The Insolvency and Bankruptcy Code (Second Amendment) Bill,2019 has been passed by Lok Sabha. While constant protests were being made my Congress party members, Finance Minister Nirmala Sitharaman urged for cooperation in the house.
Finally the Bill was declared as passed by Rajendra Agarwal, who was in the chair. The amendments have been made to remove the hurdles lying the way of streamlining corporate insolvency resolution process. The successful bidders will be ring-fenced from criminal proceedings arising due to acts of previous promoters of the concerned companies.
Where real estate developers have committed default, the insolvency resolution application is required to be moved by at least 100 home buyers or 10% of their total strength.
Ordinance also empowers the resolution professional in respect of requiring the suppliers to provide goods and services during the moratorium period.
To protect the suppliers’ rights, the Ordinance requires the suppliers to continue supplying only if their current dues are paid.
Since its enforcement, the Code has already been amended thrice.