AMN
President Ram Nath Kovind has given his assent to the ordinance to amend the Insolvency and Bankruptcy Code, 2016.The Code, which became operational last year, provides for a market-determined and time-bound insolvency resolution process. The ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the code.
Finance Ministry said, the amendments aim to keep out such persons who have willfully defaulted, are likely to be a risk to the successful resolution of insolvency of a company.
In addition to putting in place restrictions for such persons to participate in the resolution or liquidation process, the amendment also provides such check by specifying that the Committee of Creditors ensure the viability and feasibility of the resolution plan before approving it.
The punishment will be in the range of one lakh rupees to two crore rupees.