Parliament Standing Committee on Finance has submitted its report on the insolvency and bankruptcy code (IBC) amendment bill. CNBC-TV18’s Rituparna Bhuyan explains the salient highlights of the report.

The panel has expressed concerns in section 5(B) of the IBC bill 2019. This section basically says that critical supplies cannot be terminated or suspended during their moratorium period. On which the panel has said that this is not done because market forces basically should determine whether supplies should be made by the creditors to the companies, which are under resolution process and market forces should resolve whether supplies to a corporate debtor data should be made. It has also said that MSME payment should be done during the course of the resolution process itself.

Secondly, the panel has also made the observation that the government is in the final stages of a cross-border insolvency bill and it has recommended that this bill should be tabled as soon as possible.

The panel has called for further amendments to the IBC saying that an empirical evidence based approach should be taken on what kind of changes should be made to the IBC. Hence it has also said that the panel will be having more hearings on the kind of changes that needs to be made to the IBC process and these hearings will continue.

First Published:Mar 4, 2020 5:55 PM IST