Parliament has passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 with Rajya Sabha approving it on August 3 amidst din.
- The Lok Sabha has already passed the Bill.
- The Bill is to amend the Insolvency and Bankruptcy Code, 2016.
- Insolvency is a situation where individuals or companies are unable to repay their outstanding debt.
- The Code provides a time-bound process for resolving the insolvency of corporate debtors.
- The Bill introduces an alternate insolvency resolution process for Micro, Small, and Medium Enterprises (MSMEs), called the pre-packaged insolvency resolution process (PIRP).
- Application for initiating PIRP may be filed in the event of a default of at least one lakh rupees. The central government may increase the threshold of minimum default up to one crore rupees through a notification.
(News On Air)
