Bankruptcy Bill Explained: Govt May Refer it to Joint Committee

The ‘Insolvency and Bankruptcy Code, 2015’ will be up for discussion in the Lok Sabha today.

A final decision on whether the Bill will be referred to a joint select committee will be taken on Wednesday. (Photo: iStockphoto)

The government on Tuesday said that it is willing to refer the Insolvency and Bankruptcy Code, 2015, to a joint committee of Parliament, effectively pushing its enactment at least to the Budget session beginning in February. A final decision on whether the Bill will be referred to a joint select committee will be taken on Wednesday, the last day of the winter session.

Pitching for the Bill’s early enactment, finance minister Arun Jaitley said, “I could have styled it as a money bill but I wanted a discussion on the bill because I think it is important. I recommend it should go to a select committee because most of the recommendations made by the standing committee are not accepted and the other house again refers the issue to the select committee.”

A money bill would have given the government the option to effectively bypass the upper house, where it is in a minority.

The Quint explains the proposed Bill.