Bisheshwar Mishra / NEW DELHI
Parliament today passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2017. Rajya Sabha approved the Bill today Lok Sabha had already passed the Bill earlier.
The Bill prohibits certain persons from submitting a resolution plan in case of defaults. They include willful defaulters, promoters or management of the company having an outstanding non-performing debt for over a year.
It also has provisions to bar the sale of property of a defaulter to such persons during liquidation. The bill was passed by the Lok Sabha last week.
Replying to the debate, Finance Minister Arun Jaitley said, the process of declaring companies is cumbersome.
This is why amendments are made to simplify the process from time to time. Earlier, initiating a discussion P Chidambaram of Congress described the clauses of the Bill as overinclusive.
He apprehended that the Bill will enhance the risk of Indian companies going into foreign hands. Bhupendra Yadav of BJP welcomed the Bill.