Ibc Act

The Centre on Monday introduced a bill in Lok Sabha for providing a resolution process for financially stressed micro, small and medium enterprises.

Five years since the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016 began, it has resolved only 394 cases.

Finance Minister Nirmala Sitharaman clarified that Insolvency and Bankruptcy Code proceedings against corporates defaulting on loans prior to March 25 would continue.

Sources said an ordinance would be promulgated to suspend three sections of IBC for up to one year

The operational creditors wanted to be treated at par with secured creditors such as banks and financial institutions.

While IBC tries to give primacy to the creditors RERA tries to put consumers before creditors.

The ordinance authorises the Reserve Bank to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.

The Centre on Monday introduced a bill in Lok Sabha for providing a resolution process for financially stressed micro, small and medium enterprises.

Five years since the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016 began, it has resolved only 394 cases.

Finance Minister Nirmala Sitharaman clarified that Insolvency and Bankruptcy Code proceedings against corporates defaulting on loans prior to March 25 would continue.

Sources said an ordinance would be promulgated to suspend three sections of IBC for up to one year

The operational creditors wanted to be treated at par with secured creditors such as banks and financial institutions.

While IBC tries to give primacy to the creditors RERA tries to put consumers before creditors.

The ordinance authorises the Reserve Bank to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.