Cabinet Approves Ordinance to Amend Insolvency & Bankruptcy Code

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November 22, 2017

It has been reported that the Union Cabinet has approved ordinance to effect amendments to the Insolvency and Bankruptcy Code, 2016 (Code). Media reports indicate that the ordinance to amend the Code would be presented in the Winter Session of Parliament.

It had been reported earlier in October that Government has been considering to amend the Code with a view to resolve practical difficulties in the wake of problems being faced by home buyers. Reportedly, Union Minister P.P. Chaudhary had apprised that the Centre is open to amendments as many home buyers of undelivered flats are seeking relief under the Law. The Minister also remarked that as it is a new Law some cases would throw challenges, where there would be some apprehensions, which I am sure would get resolved as we go forward with the implementation.

Here it would be pertinent to mention that in September a¬†petition was filed with the Supreme Court wherein 107 home buyers of Amrapali Silicon City (Amrapali Group’s project in Noida) had challenged the provisions of the Code on the ground that the provisions violated their fundamental right to live with dignity and self-respect under Articles 14 and 21 of the Constitution of India