Insolvency and Bankruptcy Code: Government says no reduction in resolution plan submissions post Ordinance

Minister of State for Corporate Affairs P P Chaudhary informed the Rajya Sabha that "there does not seem to be any reduction" in submission of resolution plans after enactment of the Ordinance.

By: PTI | New Delhi | Published: March 13, 2018 6:32:01 pm
Insolvency and Bankruptcy Code Minister of State for Corporate Affairs, PP Chaudhary (File Pic: Ministry of Finance/Twitter)

The government on Tuesday said there has been no reduction in submission of resolution plans after amendments to the insolvency law wherein certain persons, including wilful defaulters, have been barred from putting in their bids. The Insolvency and Bankruptcy Code (Amendment) Ordinance was promulgated on November 23, 2017, following which wilful defaulters were barred from submitting resolution plan. Besides, it made further provisions to specify certain additional requirements for submission and consideration of the resolution plan before its approval by committee of creditors.

Minister of State for Corporate Affairs P P Chaudhary informed the Rajya Sabha that “there does not seem to be any reduction” in submission of resolution plans after enactment of the Ordinance. On January 18 this year, the Ordinance was replaced by the IBC (Amendment) Act, 2018.

“Eight resolution plans have been approved by National Company Law Tribunal (NCLT) after coming into effect of Ordinance as compared to five resolution plans approved earlier,” Chaudhary said in a written reply. The Code provides for market-determined and time-bound resolution process.

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