Current context: Insolvency and Bankruptcy Code (Amendment) Bill 2020 has been passed by the Parliament on 12th March 2020.
- The IBC (Amendment) Bill 2020 was passed by the Lok Sabha on 6th March 2020 and received the Rajya Sabha nod on 12th March 2020.
- The bill aims to help ring-fence successful bidders of insolvent companies from risk of criminal proceedings for offences committed by previous promoters.
- It gives he highest priority in repayment to last mile funding to corporate debtors to prevent insolvency, in case the company goes into corporate insolvency resolution process or liquidation.
- It prevents potential abuse of the Code by certain classes of financial creditors.
- The bill clarifies that the insolvency commencement date is the date of admission of an application for initiating corporate insolvency resolution process (CIRP).
- The Code allows the creditors to initiate an insolvency resolution process, if the amount of default by the debtor is at least one lakh rupees.
- The IBC Amendment Bill 2020 was introduced in the house by Finance Minister Nirmala Sitharaman on 12th December 2019.
- The IBC came into force in 2016 and it has been amended thrice till date.
Question:
The Insolvency and Bankruptcy Code (Amendment) Bill _________ has been recently passed by the Parliament on 12th March 2020
a. 2020
b. 2019
c. 2018
d. 2017
a. 2020
b. 2019
c. 2018
d. 2017
