The Lok Sabha took up The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018 for discussion. The Bill was passed by the House. This Bill makes amendments to the 2016 Insolvency and Bankruptcy Code (IBC) to include real estate project allottees as financial creditors. These allottees include any person to whom a plot, apartment, or building has been sold or allotted.
This status as a financial creditor allows real estate allottees to appoint an authorised representative to participate and vote in the committee of creditors on their behalf. The voting threshold for routine decisions taken by the committee of creditors has been reduced from 75% to 51%. For certain key decisions, this threshold has been reduced to 66%. To know and understand the implications of this amendment on real estate allottees, read our blog on this topic, here.
The discussion in the House raised several issues such as lowering this voting threshold, and the benefits of applying the IBC to micro, small and medium enterprises. Several members also questioned the urgency for introducing this Bill as an Ordinance. Some members walked out as protest during the discussion of the Bill.
The Rajya Sabha suspended Question Hour to discuss the Draft of National Register of Citizens in Assam. The discussion saw participation of members from different political parties. The House was adjourned early due to disruptions.