rRz} ro Sto QeTo_ (7)04/0007/2003 _18

ordinance · 2016 · State unknown

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Parent: THE INSOLVENCY AND BANKRUPTCY CODE, 2016 Last Update 18-8-2021 (db08e302dbdafa64a086f6402e52a1b3b84827d6)

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rRz} ro Sto QeTo_ (7)04/0007/2003 _18 REGISTERED NO. DL _(N)04/0007/2003-_18 HR TT 4EMT @he Gazette of Zndia 3THTMRU EXTRAORDNNARY H0T II _ *ug 1 PART II- Section 1 yifuqR 4 Yara PUBLISHED BY AUTHORITY to 27] No. 27] 7fava, gear, 6, 2018/546 16, 1940 P1T _ NEW DELHI; WEDNESDAY, JUNE 6, 2018/JYAISTHA 16, 1940 (SAKA) 57 HT # fT7 96 TCA & vi & fRTI f4 %3 3TrTT tona7 9 7y # 7ut * %o5 | Separate paging is given to this Part in order that it may be filed as a separate compilation: MINISTRY OFLAWAND JUSTICE (Legislative Department) New Delhi, the 6th June, 2018/Jyaistha 16, 1940 (Saka) THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ORDINANCE, 2018 NO. 6 OF 2018 Promulgated by the President In the >ixty-ninth Year of the Republic of India. An Ordinance further to amend the Insolvency and Bankruptcy Code, 2016. WHEREAS the Insolvency and Bankruptcy Code, 2016 (the Code); inter alia, provides for insolvency resolution of corporate persons in a time bound manner for maximisation of value of assets of such persons; AND WHEREAS a need has been felt; inter alia, to balance the interests of various stakeholders in the Code, especially interests ofhome buyers and micro, small and medium enterprises, promoting resolution over liquidation of corporate debtor by lowering the voting threshold of committee of creditors and streamlining provisions relating to eligibility of resolution applicants; AND WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; NOw, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution; the President is pleased to promulgate the following Ordinance: THE GAZETTE OF INDIAEXTRAORDINARY [PART II Short title and commencement_ 1. (1)

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57 · HT # fT7 96 TCA & vi & fRTI f4 %3 3TrTT tona7 9 7y # 7ut * %o5 | Separate paging is given to this Part in order that it may be filed as a separate compilation:

1 · (1) This Ordinance may be called the Insolvency and Bankruptcy Code (Amendment) Ordinance; 2018.

2 · In the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 31 of 2016. the principal Act), in section 3, in clause (12), for the word "repaid , the word "paid" shall be substituted

3 · In section 5 of the principal Act; after clause (5), the following clause shall be inserted, namely: (54) "corporate guarantor" means a corporate person who is the surety in a contract of guarantee to a corporate debtor; (ii) in clause (8), in sub-clause (f), the following Explanation shall be inserted, namely:

4 · In section 7 of the principal Act; in sub-section ( /), for the words "other financial creditors' the words "other financial creditors, or any other person on behalf of the financial creditor; as may be notified by the Central Government;' shall be substituted.

5 · In section 8 of the principal Act;

6 · In section 9 of the principal Act;

7 · In section 10 of the principal Act Amendment of section 10. for sub-section (3), the following sub-section shall be substituted, namely:

8 · In section 12 of the principal Act; in sub-section (2), for the word Amendment of "seventy-five" , the word sixty-six" shall be substituted: section 12_ 9. After section 12 of the principal Act; the following section shall be Insertion of new inserted, namely: _ section 12A_

12A · The Adjudicating Authority may allow the withdrawal of Withdrawal of application admitted under section 7 or section 9 Or section 10, on an application admitted under application made by the applicant with the approval of ninety per cent: section 7, 9 or ]0_ voting share of the committee of creditors, in such manner as may be prescribed: 10. In section 14 of the principal Act; for sub-section (3), the following Amendment of sub-section shall be substituted, namely: section 14.

12 · In section 16 of the principal Act; in sub-section (5), for the words ~shall not exceed thirty days from date of his appointment' the words and figures shall continue till the date of appointment of the resolution professional under section 22" shall be substituted.

13 · In section 17 of the principal Act; in sub-section (2), (i) in clause (d), for the words "may be specified ' the words may be specified; and" shall be substituted;

15 · In section 21 of the principal Act;

17 · In section 23 of the principal Act; in sub-section (1), the following proviso shall be inserted, namely: Provided that the resolution professional shall, if the resolution plan under sub-section (6) of section 30 has been submitted, continue to manage the operations of the corporate debtor after the expiry of the corporate insolvency resolution process period until an order is passed by the Adjudicating Authority under section 31."_ Amendment of 18. In section 24 of the principal Act; section 24. in sub-section (3), in clause (a), for the words "Committee of creditors the words, brackets, figures and letter "committee of creditors; including the authorised representatives referred to in sub-sections (6) and (64) of section 21 and sub-section (5)" shall be substituted; (ii) in sub-section (5), for the words Any creditor", the words, brackets, figures and letters Subject to sub-sections (6), (64) and (6B) of section 21, any creditor" shall be substituted. Insertion of new 19. After section 25 of the principal Act; the following section shall be section 25A_ inserted, namely:

25A · (1) The authorised representative under sub-section (6) Or sub- section (64) of section 21 or sub-section (5) of section 24 shall have the right to participate and vote in meetings of the committee of creditors on behalf of the financial creditor he represents in accordance with the prior voting instructions of such creditors obtained through physical or electronic means.

21 · In section 28 of the principal Act, in sub-section (3), for the word, Amendment of seventy-five" , the word "sixty-six" shall be substituted. section 28

22 · In section 294 of the principal Act;

42 · of 1999.

24 · In section 31 of the principal Act, in sub-section (1), the following proviso shall be inserted, namely: "Provided that the Adjudicating Authority shall, before passing an order for approval of resolution plan under this sub-section,

25 · In section 33 of the principal Act; in sub-section (2), after the words Amendment of decision of the committee of creditors' the words approved by not less than section 33_ sixty-six per cent: of the voting share" shall be inserted. 26. In section 34 of the principal Act; Amendment of section 34. (a) in sub-section (/), for the words and letter "Chapter II shall" , the words and letter "Chapter IIL shall, subject to submission of a written consent by the resolution professional to the Adjudicatory Authority in specified form;' shall be substituted;

28 · In section 45 of the principal Act; in sub-section (1), the words and Amendment of section 45_ figures "of section 43" shall be omitted 29. In section 60 of the principal Act, Amendment of section 60. (a in sub-section (2), for the words "bankruptcy of a personal guarantor of such corporate debtor" , the words "Iliquidation or bankruptcy

30 · In section 69 of the principal Act, for the words "On or after the insolvency commencement date, if , the word *If' shall be substituted

31 · In section 76 of the principal Act; (a) in the marginal heading, for the word "repayment" the word payment" shall be substituted;

32 · In section 196 of the principal Act; in sub-section (1), (i) after clause (a), the following clause shall be inserted,namely _ (aa) promote the development of,and regulate, the working and practices of, insolvency professionals, insolvency professional agencies and information utilities and other institutions, in furtherance of the purposes of this Code;' (ii) in clause (c), for the words "for the registration" the words for carrying out the purposes of this Code, including fee for registration and renewal" shall be substituted. Amendment of 33. In section 231 of the principal Act; for the words Adjudicating section 23] . Authority" at both the places where they occur; the words Adjudicating Authority or the Board" shall be substituted Insertion of new 34. After section 238 of the principal Act; the following section shall be section 238A inserted, namely:

35 · In section 239 ofthe principal Act; in sub-section (2), (i) after clause (e), the following clause shall be inserted, namely: "(ea) other proof confirming that there is no payment of an unpaid operational debt by the corporate debtor or such other information under clause (e) of sub-section (3) of section 9;;

1 · The Foreign Trade (Development and Regulation) Act; 1922 (22 of 1922);

4 · The Prevention of Food Adulteration Act; 1954 (37 of 1954);

39 · In section 434 of the Companies Act, 2013, [as substituted by paragraph Amendment of 34 of the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016], in section 434 of Act 18 of 2013 sub-section (1), in clause (c), after the proviso, the following proviso shall be inserted, namely:

31 · of 2016.