The Bankruptcy and Bankruptcy Act of 2016 is India’s bankruptcy law that seeks to integrate existing frameworks by creating a single law on bankruptcy and bankruptcy.
She will also move the 2020 Factoring Regulation (Amendment) Bill to amend it to review and pass the 2011 Factoring Regulation Act. The Factoring Regulation (Amendment) Bill, 2020 was introduced in Lok Sabha on September 24 last year and seeks to liberalise the Factory Regulation Act of 2011 by widening the scope of entities involved in the factoring business. The key changes include modifications in the definitions of receivables, assignment, and factoring business.
The Insolvency and Bankruptcy Code (Amendment) Bill, 2021, which seeks to replace the Ordinance, inter alia, provides for:
(a) specifying a minimum threshold of not more than one crore rupees for initiating pre-packaged insolvency resolution process;
(b) disposal of simultaneous applications for initiation of the corporate insolvency resolution process and pre-packaged insolvency resolution process, pending against the same corporate debtor;
(c) inserting a new Chapter III-A containing sections 54A to 54P to facilitate pre-packaged insolvency resolution process for corporate persons that are Micro, Small and Medium Enterprises;
(d) penalty for fraudulent or malicious initiation of pre-packaged insolvency resolution process or with intent to defraud persons;
(e) penalty for fraudulent management of corporate debtor during pre-packaged insolvency resolution process;
(f) punishment for offences related to pre-packaged insolvency resolution process; and
(g) certain amendments to the relevant provisions, which are consequential in nature.
The Bill seeks to achieve the above objectives.
