Current Affairs

Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019

Current context: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the proposal to make amendments in the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019.
Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 
  • The amendments aim to ease insolvency resolution process to realise the objects of the code and to further ease doing of business.
  • The Amendment Bill seeks to amend sections (5(12), 5(15), 7, 11, 14, 16(1), 21(2), 23(1), 29A, 227, 239, 240) of the Insolvency and Bankruptcy Code, 2016 (Code) and insert new section 32A in the code.
  • The amendment aims to boost investment in financially distressed sectors by removing bottlenecks and streamlining the Corporate Insolvency Resolution Process (CIRP).
  • In order to prevent frivolous triggering of CIRP, additional thresholds for Financial Creditors represented by an authorized representative has been introduced.
  • It clarified that the licenses, permits, concessions, clearances etc. cannot be terminated or suspended or not renewed during the moratorium period.

Question: 

Q.1 The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 seeks to insert new section _________ in the code?
a. 32A
b. 33B
c. 32B
d. 33A
Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 Reviewed by Neha Verma on December 12, 2019 Rating: 5

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