The Cabinet, on Wednesday, gave its nod for introduction of a Bill in Parliament to replace the June 6 insolvency ordinance.
The ordinance — Insolvency and Bankruptcy Code (amendment) Ordinance 2018 — was the second ordinance issued by the Government for making changes to the Insolvency and Bankruptcy Code (IBC), which was enacted in 2016.
Besides treating home buyers as “financial creditors” and giving them a better say in the resolution plan of developers, the June ordinance had also enabled promoters of micro, small and medium enterprises to bid for their companies.
Ravi Shankar Prasad, Union Law Minister, told reporters on Wednesday that the Union Cabinet had approved the Bill to replace the insolvency ordinance.
He, however, did not specify the timeline by when the Bill will be introduced. Indications are that the Government will introduce the Bill in the ongoing monsoon session itself.