Lok Sabha passes Insolvency and Bankruptcy Code (2nd

New Delhi, Mar 6 () Lok Sabha on Friday passed theInsolvency and Bankruptcy Code (Second Amendment) Bill amidnoisy protests.

The bill seeks to amend the Insolvency and BankruptcyCode (IBC) so that successful bidders of insolvent companiesare ring-fenced from any risk of criminal proceedings foroffences committed by previous promoters of the companiesconcerned.

Finance Minister Nirmala Sitharaman sought thecooperation of the members to pass the Bill in the House.

The Bill was declared passed by Rajendra Agarwal, who wasin the chair, amidst continuous protests by Congress members,who have been demanding a discussion on the riots in Delhi.

The amendments in the law seek to remove bottlenecks andstreamline the corporate insolvency resolution process,wherein successful bidders will be ring-fenced from any riskof criminal proceedings for offences committed by previouspromoters of companies concerned.

The Insolvency and Bankruptcy Code, which came into forcein 2016, has already been amended thrice.