Parliament passes Insolvency & Bankruptcy Code (Second Amendment) Bill, 2018
10th August, 2018Category:
Parliament has passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018. The bill, which was passed in Lok Sabha on July 31, was approved in the Rajya Sabha today by voice vote.
The Bill seeks to clarify that allottees under a real estate project should be treated as financial creditors.
As per the bill, home buyers will get due representation in the Committee of Creditors that takes a call on resolution proposals, making them an integral part of the decision making process. The Bill allows the withdrawal of a resolution application submitted to the National Company Law Tribunal under the Code. This decision can be taken with the approval of 90 per cent of the committee of creditors.
The IBC, 2016 provides time-bound process to resolution of insolvency among companies and individuals. Insolvency is situation where individual or company is unable to repay their outstanding debt.
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