IBC amendment Bill introduced amid Oppn protests

IBC amendment Bill introduced amid Oppn protests

Agency News

New Delhi, Dec 12: The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 which aims to remove certain difficulties being faced during the insolvency resolution process, was introduced in the Lok Sabha on Thursday amid protest from opposition members.

Amendments to the Code would remove bottlenecks, streamline the Corporate Insolvency Resolution Process (CIRP) and ensure protection of last mile funding. Congress floor leader Adhir Ranjan Chowdhury opposed the introduction of the Bill, saying that the government was introducing draft law without providing adequate time to members to study it. He was supported by Trinamool Congress members as well.

Mr Chowdhury said according to the rules, a Bill should be circulated two days in advance.

The government was taking Parliament for a ride, he charged, adding that 'we are being deprived of our democratic rights'. He also demanded that the Bill be sent to the Standing Committee. Addressing the Chair, he said, 'You are being taken for granted'. BJP member Nishikant Dubey took exception on this and registered his protest on such remarks.

'Nobody can take Speaker for granted,' the BJP lawmaker said and demanded that Mr Chowdhury should take his remark back. Minister of State for Parliamentary Affairs Arjun Ram Meghwal said unnecessary politics was being played. Trinamool Congress member Saugata Roy also supported the contention of the Congress leader Chowdhury.

Finance Minister Nirmala Sitharaman said she was speaking with the consent of Speaker Om Birla.

She said the IBC bill came in July Budget session. Responding to developments in the economy and seeing there were different interpretations, 'we have to help the industry', she said trying to justify the government move to bring the new amendments.

'There was lot of doubt in small house buyers and we have to give them clarity,' she said. She said - 'sarcasm should be avoided'. The minister charged that the opposition does not want legislative changes to be shown to the people of India, adding - 'You do not want government to function'.

The Speaker said since there were just two days left before the winter session winds up, so he allowed the Minister to go ahead with the Bill.

The proposed bill will make amendments in the Insolvency and Bankruptcy Code, 2016 (code).

The Amendment Bill seeks to amend various sections and insert a new section 32A in the Insolvency and Bankruptcy Code, 2016 (Code).

This is expected to boost investment in financially distressed sectors.

The amendments would also remove difficulties being faced during insolvency resolution process to realise the objects of the code and to further ease doing of business. (UNI)