Insolvency and Bankruptcy Bill enables efficient resolution framework : Sitharaman

Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Wednesday said that the passage of the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 enables an efficient alternative insolvency resolution framework for micro, small and medium enterprises (MSMEs).

"Salient features of the Bill include: - Pre-pack for MSMEs which blends elements & virtues of both formal and informal insolvency proceedings," she said.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 provides for a pre-packaged insolvency resolution mechanism for micro, small and medium enterprises (MSMEs).

"Other features of the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 include: - Guidance and oversight of the resolution professional - Finality of the process, with judicial approval. A process that offers flexibility - Quicker, cost-effective, and value-maximizing outcomes for all stakeholders, " Sithraman said in a series o tweets mentioning the benefits of the recently passed Insolvency and Bankruptcy Code (Amendment) Bill, 2021 .

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 was passed by the Lok Sabha on July 28 and by the Rajya Sabha on Tuesday following a brief discussion amid ruckus created by Opposition parties over the Pegasus snooping row and other issues.

( With inputs from ANI )