Ordinance to amend Insolvency and Bankruptcy Code gets Cabinet approval

The Union Cabinet on Tuesday approved an ordinance to further amend the Insolvency and Bankruptcy Code (IBC), which will help remove certain ambiguities.

With the changes, there would be no liability on a corporate debtor for an offence committed prior to commencement of the insolvency resolution process, an official release said.

Further, the corporate debtor would not be prosecuted for any such offence from the date of resolution plan being approved by the adjudicating authority.

Union Minister Prakash Javadekar on Tuesday said the Cabinet has cleared an ordinance to amend the Code.

"The amendment will remove certain ambiguities in the IBC, 2016 and ensure