Parliament clears Insolvency Bill to check wilful defaulters

NEW DELHI:  With approval by a voice vote from the House of the People, Parliament on Thursday cleared Insolvency and Bankruptcy Code(Amendment) Bill, 2018 that prohibits wilful defaulters from submitting resolution plans or participating in the liquidation process of an insolvent company.

Lok Sabha passed the amendment made by Rajya Sabha in the bill to amend the Insolvency and Bankruptcy Code 2016. The amendment was in Clause 1 that at page 1, line 3, for the figure ”2017” , the figure ”2018” be substituted.

Minister of State for Corporate affairs PP Chaudhary piloted the Bill.

The Bill prohibits wilful defaulters,  promoters or management of the company having outstanding non-performing debt for over a year, and disqualified directors from submitting a resolution plan in case of defaults. (AGENCIES)

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