Union Cabinet approves amendments to Insolvency & Bankruptcy Code (Second Amendment) Bill

The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the proposal to make amendments in the Insolvency and Bankruptcy Code, 2016, through the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019. The amendments aim to eliminate certain difficulties faced during the insolvency resolution process to realise the objects of the code and to further ease in doing business.

About the Proposal

The Amendment Bill seeks to amend sections 5(12), 5(15), 7, 11, 14, 16(1), 21(2), 23(1), 29A, 227, 239, 240 and insert new section 32A in the Insolvency and Bankruptcy Code, 2016 (Code).

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Impact

1. Amendments to the Code to remove bottlenecks, streamline the CIRP and protection of last-mile funding will boost investment in financially distressed sectors.
2. Additional thresholds introduced for Financial Creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of the Corporate Insolvency Resolution Process (CIRP).
3. Ensuring that the substratum of the business of the corporate debtor is not lost, and it can continue as a going concern by clarifying that the licenses, permits, concessions, clearances, etc. cannot be terminated or suspended or not renewed during the moratorium period.
4. Ring-fencing corporate debtor resolved under the IBC in favour of a successful resolution applicant from criminal proceedings against offences committed by previous management/promoters.

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Bill to set up Central Sanskrit universities

A bill to set up central Sanskrit universities was introduced in Lok Sabha on Wednesday. The bill, moved by Human Resource Development Minister Ramesh Pokhriyal 'Nishank', seeks to convert three Sanskrit deemed universities presently functioning in the country into central universities.

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Sanskrit Universities in India

The three deemed universities are Rashtriya Sanskrit Sansthan and the Shri Lal Bahadur Shastri Rashtriya Sanskrit Vidyapeeth in New Delhi and the Rashtriya Sanskrit Vidyapeeth in Tirupati. While the Sansthan dates back to 1970, Lal Bahadur Shastri Rashtriya Sanskrit Vidyapeeth was set up in 1962. The Rashtriya Sanskrit Vidyapeeth in Tirupati came up in 1961. All three were granted deemed university status by the UGC later.