In a significant move, the Union Cabinet on Wednesday cleared seven amendments to the insolvency law. The amendments to the Insolvency and Bankruptcy Code (IBC) are aimed at filling critical gap in the corporate insolvency resolution framework while at the same maximising value from the resolution process.
The amendments would “enable the Government to ensure maximisation of value of a corporate debtor as a going concern while simultaneously adhering to strict timelines,” said Union Ministers Prakash Javadekar and Piyush Goyal, briefing the media about Cabinet decisions. The changes are expected to lead to timely admission of applications and timely completion of the corporate insolvency resolution process.
The amended Code would also provide greater clarity on permissibility of corporate restructuring schemes, clarity on rights and duties of authorised representatives of voters, manner of distribution of amounts amongst financial and operational creditors as well as applicability of the resolution plan on all statutory authorities. The amendments would “enable the government to ensure maximisation of value of a corporate debtor as a going concern while simultaneously adhering to strict timelines,” the release added.
The Cabinet decided to extend the 15th Finance Commission’s term by a month till November 30, and broadened the ambit of its recommendation to include funds for defence and internal security, an official statement said. The Government on November 27, 2017, notified the 15th Finance Commission, headed by NK Singh, to suggest, among other things, the formula for devolution of funds to States by the Centre for five years commencing April 1, 2020.
Cabinet meeting chaired by Prime Minister Narendra Modi also approved a bill to scrap 58 laws which have lost their relevance. The NDA Government in its two terms has sent to the chopping block 1824 old laws which had become redundant. After the Repealing and Amendment Bill, 2019 gets parliamentary nod, 137 laws, which according to the government, have lost their relevance will be scrapped in the next lot.
The list of the 58 laws which will be repealed was not immediately available, but sources in the Government said most are Acts which were enacted to amend principal or main laws.