The Insolvency and Bankruptcy Code (Amendment) Bill 2021

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 (as introduced in Lok Sabha)

A BILL
further to amend the Insolvency and Bankruptcy Code, 2016.
BE it enacted by Parliament in the Seventy-second Year of the Republic of India as follows:—

1. Short title and commencement.
   (1) This Act may be called the Insolvency and Bankruptcy Code (Amendment) Act, 2021.
   (2) It shall be deemed to have come into force on the 4th day of April, 2021.
   
   Amendment of section 4.
2. In the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the principal Act), in section 4, after the proviso, the following proviso shall be inserted, namely:—
   “Provided further that the Central Government may, by notification, specify such minimum amount of default of higher value, which shall not be more than one crore rupees, for matters relating to the pre-packaged insolvency resolution
   process of corporate debtors under Chapter III-A.”.
   
3. In section 5 of the principal Act,—
   
   (i) after clause (2), the following clause shall be inserted, namely:—
   ‘(2A) “base resolution plan” means a resolution plan provided by the corporate debtor under clause (c) of sub-section (4) of section 54A;’;
   
   (ii) in clause (5), in sub-clause (b), after the words “corporate insolvency resolution process”, the words “or the pre-packaged insolvency resolution process, as the case may be,” shall be inserted;
   
   (iii) in clause (11), after the words “corporate insolvency resolution process”, the words “or pre-packaged insolvency resolution process, as the case may be” shall be inserted;
   
   (iv) in clause (15), after the words “process period”, the words “or by the corporate debtor during the pre-packaged insolvency resolution process period, as the case may be” shall be inserted;
   
   (v) in clause (19), after the words “for the purposes of”, the words and figures “Chapter VI and” shall be inserted;
   
   (vi) after clause (23), the following clauses shall be inserted, namely:—
   
   ‘(23A) “preliminary information memorandum” means a memorandum submitted by the corporate debtor under clause (b) of sub-section (1) of section 54G;
   
   (23B) “pre-packaged insolvency commencement date” means the date of admission of an application for initiating the pre-packaged insolvency resolution process by the Adjudicating Authority under clause (a) of sub-section (4) of section 54C;
   
   (23C) “pre-packaged insolvency resolution process costs” means—
   (a) the amount of any interim finance and the costs incurred in raising such finance;
   (b) the fees payable to any person acting as a resolution professional and any expenses incurred by him for conducting the pre-packaged insolvency resolution process during the pre-packaged insolvency resolution process period, subject to sub-section (6) of section 54F;
   (c) any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern pursuant to an order under sub-section (2) of section 54J;
   (d) any costs incurred at the expense of the Government to facilitate the pre-packaged insolvency resolution process; and
   (e) any other costs as may be specified;
   
   (23D) “pre-packaged insolvency resolution process period” means the period beginning from the pre-packaged insolvency commencement date and ending on the date on which an order under sub-section (1) of section 54L, or sub-section (1) of section 54N, or sub-section (2) of section 54-O, as the case may be, is passed by the Adjudicating Authority;’;
   
   (vii) in clause (25), after the words, brackets and figures “of sub-section (2) of section 25”, the words, figures and letter “or pursuant to section 54K, as the case may be,” shall be inserted;
   
   (viii) in clause (27), after the words “corporate insolvency resolution process”, the words “or the pre-packaged insolvency resolution process, as the case may be,” shall be inserted.

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