Karnataka Gazette, Part Part-4, 01 November 2018

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ಭಾಗ ೪ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೭೯೩

REGISTERED NO. DL—(N)04/0007/2003—18

रजिस्ट्री सं॰ डी॰ एल॰—(एन)04/0007/2003—18

REGISTERED NO. DL—(N)04/0007/2003—18

रजिस्ट्री सं॰ डी॰ एल॰—(एन)04/0007/2003—18

ಸಂಪುಟ ೧೫೩

ಸಂಪುಟ ೧೫೨

Volume 153

Volume 152

ಬೆಂಗಳೂರು, ಗುರುವಾರ, ಜುಲೈ ೧೩, ೨೦೧೭ (ಆಷಾಡ ೨೨, ಶಕ ವರ್ಷ ೧೯೩೯)

ಬೆಂಗಳೂರು, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ (ಕಾರ್ತೀಕ ೧೦, ಶಕ ವರ್ಷ ೧೯೪೦)

Bengaluru, Thursday, November 1, 2018 (Karthika 10, Shaka Varsha 1940)

Bengaluru, Thursday, July 13, 2017 (Ashadha 22, Shaka Varsha 1939)

ಸಂಚಿಕೆ ೨೮

ಸಂಚಿಕೆ ೪೩

Issue 43

Issue 28

ಭಾಗ ೪

सं॰ 41] नई दिल्ली, मंगलवार, अगस्त 21, 2018/ श्रावण 30, 1940 (शक)

ಸಂಸದೀಯ ವ್ಯವಹಾರಗಳು ಮತ್ತು ಶಾಸನ ರಚನೆ ಸಚಿವಾಲಯ

No. 41] NEW DELHI, TUESDAY, AUGUST 21, 2018/SHRAVANA 30, 1940 (SAKA)

इस भाग में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके।

ಅಧಿಸೂಚನೆ

Separate paging is given to this Part in order that it may be filed as a separate compilation.

ಸಂಖ್ಯೆ: ಸಂವ್ಯಶಾಇ 38 ಕೇಶಾಪ್ರ 2018, ಬೆಂಗಳೂರು, ದಿನಾಂಕ: 11-09-2018.

इस भाग में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके।

ಸಂಖ್ಯೆ: ಸಂವ್ಯಶಾಇ 08 ಕೇಶಾಪ್ರ 2017, ಬೆಂಗಳೂರು, ದಿನಾಂಕ: 03-05-2017

Separate paging is given to this Part in order that it may be filed as a separate compilation.

ದಿನಾಂಕ 07-04-2017 ರಂದು ಭಾರತ ಸರ್ಕಾರದ ಗೆಜೆಟ್‌ನ ವಿಶೇಷ ಸಂಚಿಕೆಯ ಭಾಗ-II ಸೆಕ್ಷನ್ (1) ರಲ್ಲಿ ಪ್ರಕಟವಾದ ದಿನಾಂಕ: 21-08-2018 ರಂದು ಭಾರತ ಸರ್ಕಾರದ ಗೆಜೆಟ್‌ನ ವಿಶೇಷ ಸಂಚಿಕೆಯ Part-II Section-1 ರಲ್ಲಿ ಪ್ರಕಟವಾದ The Com- mercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, ²⁰¹⁸ (No. ²⁸ of ²⁰¹⁸) ಅನ್ನು ಈ ಕೆಳಕಂಡ The Mental Healthcare Act, ²⁰¹⁷ (No. ¹⁰ of ²⁰¹⁷) ಅನ್ನು ಸಾರ್ವಜನಿಕರ ಮಾಹಿತಿಗಾಗಿ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರದಲ್ಲಿ ಮರು MINISTRY OF LAW AND JUSTICE ಸಾರ್ವಜನಿಕರ ಮಾಹಿತಿಗಾಗಿ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರದಲ್ಲಿ ಮರು ಪ್ರಕಟಿಸಲಾಗಿದೆ. (Legislative Department) ಪ್ರಕಟಿಸಲಾಗಿದೆ.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 21st August, 2018/Shravana 30, 1940 (Saka)

(Legislative Department)

New Delhi, the 21st August, 2018/Shravana 30, 1940 (Saka) The following Act of Parliament received the assent of the President on the New Delhi, the 10th August, 2016/Shravana 19, 1938 (Saka)

20th August, 2018, and is hereby published for general information:—

The following Act of Parliament received the assent of the President on the The following Act of Parliament received the assent of the President on the 9th August, 2016, and is hereby published for 20th August, 2018, and is hereby published for general information:—

general information:-

THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND THE NATIONAL INSTITUTES OF TECHNOLOGY, SCIENCE EDUCATION AND RESEARCH COMMERCIAL APPELLATE DIVISION OF HIGH COURTS THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND (AMENDMENT) ACT, 2016 (AMENDMENT) ACT, 2018 COMMERCIAL APPELLATE DIVISION OF HIGH COURTS (AMENDMENT) ACT, 2018

No.42 OF 2016 NO. 28 OF 2018 [9th August, 2016]

[20th August, 2018.]

NO. 28 OF 2018

An Act further to amend the National Institutes of Technology, Science Education and Research Act, 2007.

An Act to amend the Commercial Courts, Commercial Division and

[20th August, 2018.] Commercial Appellate Division of High Courts Act, 2015.

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:-

An Act to amend the Commercial Courts, Commercial Division and BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as Commercial Appellate Division of High Courts Act, 2015.

1. Short title and commencement. (1) This Act may be called the National Institutes of Technology, Science Education and follows:—

Research (Amendment) Act, 2016.

BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as 1. (1) This Act may be called the Commercial Courts, Commercial Division and follows:—

(2) It shall be deemed to have come into force on the 20th day of August, 2015.

Commercial Appellate Division of High Courts (Amendment) Act, 2018.

1. (1) This Act may be called the Commercial Courts, Commercial Division and (2) Save as otherwise provided, it shall be deemed to have come into force on the Commercial Appellate Division of High Courts (Amendment) Act, 2018.

3rd day of May, 2018.

Short title and commence- Short title ment. and commence- ment.

(2) Save as otherwise provided, it shall be deemed to have come into force on the

(೨೪೯)

(೭೯೩)

3rd day of May, 2018.

2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— ೭೯೪ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪

Amendment of long title.

4 of 2016.

2. In the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (hereinafter referred to as the principal Act), in the long title, after the words "Commercial Courts", the words "Commercial Appellate Courts," shall be inserted.

3. In section 1 of the principal Act, for sub-section (1), the following sub-section Amendment of section 1. shall be substituted, namely:—

"(1) This Act may be called the Commercial Courts Act, 2015.".

4. In section 2 of the principal Act, in sub-section (1),—

Amendment of section 2.

(I) clause (a) shall be renumbered as clause (aa) thereof, and before clause (aa) as so renumbered, the following clause shall be inserted, namely:—

'(a) "Commercial Appellate Courts" means the Commercial Appellate Courts designated under section 3A;';

(II) in clause (i), for the words "which shall not be less than one crore rupees", the words "which shall not be less than three lakh rupees" shall be substituted.

5. In the principal Act, in Chapter II, for the Chapter heading, the following Chapter heading shall be substituted, namely:—

Substitution of Chapter heading.

"COMMERCIAL COURTS, COMMERCIAL APPELLATE COURTS, COMMERCIAL DIVISIONS AND COMMERCIAL APPELLATE DIVISIONS".

6. In section 3 of the principal Act,—

Amendment of section 3.

(a) in sub-section (1), for the proviso, the following provisos shall be substituted, namely:—

"Provided that with respect to the High Courts having ordinary original civil jurisdiction, the State Government may, after consultation with the concerned High Court, by notification, constitute Commercial Courts at the District Judge level:

Provided further that with respect to a territory over which the High Courts have ordinary original civil jurisdiction, the State Government may, by notification, specify such pecuniary value which shall not be less than three lakh rupees and not more than the pecuniary jurisdiction exercisable by the District Courts, as it may consider necessary.";

(b) after sub-section (1), the following sub-section shall be inserted, namely:—

"(1A) Notwithstanding anything contained in this Act, the State Government may, after consultation with the concerned High Court, by notification, specify such pecuniary value which shall not be less than three lakh rupees or such higher value, for whole or part of the State, as it may consider necessary.";

(i) for the words "State Government shall", the words "State Government may" shall be substituted;

(ii) for the words "Commercial Court, from amongst the cadre of Higher Judicial Service in the State", the following words shall be substituted, namely:—

"Commercial Court either at the level of District Judge or a court below the level of a District Judge".

SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 ಭಾಗ ೪ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೭೯೫

7. After section 3 of the principal Act, the following section shall be inserted, namely:—

Insertion of new section 3A.

Designation of Commercial Appellate Courts.

"3A. Except the territories over which the High Courts have ordinary original civil jurisdiction, the State Government may, after consultation with the concerned High Court, by notification, designate such number of Commercial Appellate Courts at District Judge level, as it may deem necessary, for the purposes of exercising the jurisdiction and powers conferred on those Courts under this Act.".

Amendment of section 4.

8. In section 4 of the principal Act, in sub-section (1), for the words "ordinary civil jurisdiction", the words "ordinary original civil jurisdiction" shall be substituted.

9. Section 9 of the principal Act shall be omitted.

Omission of section 9.

10. In section 12 of the principal Act, in sub-section (1),—

Amendment of section 12.

(i) in clause (c), after the words "Specified Value;", the word "and" shall be inserted;

(ii) in clause (d), the word "and", occurring at the end, shall be omitted;

(iii) clause (e) shall be omitted.

11. After Chapter III of the principal Act, the following Chapter shall be inserted, namely:—

Insertion of new Chapter IIIA.

"CHAPTER IIIA

PRE-INSTITUTION MEDIATION AND SETTLEMENT

12A. (1) A suit, which does not contemplate any urgent interim relief under this Act, shall not be instituted unless the plaintiff exhausts the remedy of pre-institution mediation in accordance with such manner and procedure as may be prescribed by rules made by the Central Government.

Pre- Institution Mediation and Settlement.

39 of 1987.

(2) The Central Government may, by notification, authorise the Authorities constituted under the Legal Services Authorities Act, 1987, for the purposes of pre-institution mediation.

39 of 1987.

(3) Notwithstanding anything contained in the Legal Services Authorities Act, 1987, the Authority authorised by the Central Government under sub-section (2) shall complete the process of mediation within a period of three months from the date of application made by the plaintiff under sub-section (1):

Provided that the period of mediation may be extended for a further period of two months with the consent of the parties:

Provided further that, the period during which the parties remained occupied with the pre-institution mediation, such period shall not be computed for the purpose of limitation under the Limitation Act, 1963.

36 of 1963.

(4) If the parties to the commercial dispute arrive at a settlement, the same shall be reduced into writing and shall be signed by the parties to the dispute and the mediator.

26 of 1996.

(5) The settlement arrived at under this section shall have the same status and effect as if it is an arbitral award on agreed terms under sub-section (4) of section 30 of the Arbitration and Conciliation Act, 1996.".

12. In section 13 of the principal Act, for sub-section (1), the following shall be Amendment of section 13.

substituted, namely:—

೭೯೬ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪ 4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

"(1) Any person aggrieved by the judgment or order of a Commercial Court below the level of a District Judge may appeal to the Commercial Appellate Court within a period of sixty days from the date of judgment or order.

(1A) Any person aggrieved by the judgment or order of a Commercial Court at the level of District Judge exercising original civil jurisdiction or, as the case may be, Commercial Division of a High Court may appeal to the Commercial Appellate Division of that High Court within a period of sixty days from the date of the judgment or order:

5 of 1908. 26 of 1996.

Provided that an appeal shall lie from such orders passed by a Commercial Division or a Commercial Court that are specifically enumerated under Order XLIII of the Code of Civil Procedure, 1908 as amended by this Act and section 37 of the Arbitration and Conciliation Act, 1996.".

Amendment of section 14.

13. In section 14 of the principal Act, for the words "Commercial Appellate Division", the words "Commercial Appellate Court and the Commercial Appellate Division" shall be substituted.

Amendment of section 15.

14. In section 15 of the principal Act, in sub-section (4), for the words, figures and letter "with Order XIV-A", the words, figures and letter "with Order XV-A" shall be substituted.

Amendment of section 17.

15. In section 17 of the principal Act, for the words "Commercial Courts" and "Commercial Court", wherever they occur, the words "Commercial Courts, Commercial Appellate Courts" shall be substituted.

16. In section 20 of the principal Act, for the words "Commercial Court", the Amendment of section 20.

words "Commercial Courts, Commercial Appellate Courts" shall be substituted.

17. After section 21 of the principal Act, the following section shall be inserted, namely:—

Insertion of new section 21A.

"21A. (1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.

Power of Central Government to make rules.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for or any of the following matters, namely:—

(a) the manner and procedure of pre-institution mediation under sub-section (1) of section 12A;

(b) any other matter which is required to be, or may be, prescribed or in respect of which provision is to be made by rules made by the Central Government.

(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session, or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.".

18. In the Schedule to the principal Act,—

Amendment of Schedule.

(i) in Paragraph 4, in sub-paragraph (D), in item (iv),—

(a) in the opening portion, the words "after the first proviso,"shall be omitted;

ಭಾಗ ೪ SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5 ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೭೯೭

(b) for the words "Provided further that", the words "Provided that" shall be substituted;

(ii) in Paragraph 11, for the words "Commercial Court", the words "Commercial Court, Commercial Appellate Court" shall be substituted;

(iii) after Paragraph 11, the following shall be inserted and shall be deemed to have been inserted with effect from the 23rd October, 2015, namely:—

'12. After Appendix H, the following Appendix shall be inserted, namely:—

''APPENDIX-I

STATEMENT OF TRUTH

(Under First Schedule, Order VI- Rule 15A and Order XI- Rule 3)

I ----- the deponent do hereby solemnly affirm and declare as under:

1. I am the party in the above suit and competent to swear this affidavit.

2. I am sufficiently conversant with the facts of the case and have also examined all relevant documents and records in relation thereto.

3. I say that the statements made in -----paragraphs are true to my knowledge and statements made in -----paragraphs are based on information received which I believe to be correct and statements made in ---paragraphs are based on legal advice.

4. I say that there is no false statement or concealment of any material fact, document or record and I have included information that is according to me, relevant for the present suit.

5. I say that all documents in my power, possession, control or custody, pertaining to the facts and circumstances of the proceedings initiated by me have been disclosed and copies thereof annexed with the plaint, and that I do not have any other documents in my power, possession, control or custody.

6. I say that the above-mentioned pleading comprises of a total of ---- pages, each of which has been duly signed by me.

7. I state that the Annexures hereto are true copies of the documents referred to and relied upon by me.

8. I say that I am aware that for any false statement or concealment, I shall be liable for action taken against me under the law for the time being in force.

Place:

Date:

DEPONENT

VERIFICATION

I, ………………………. do hereby declare that the statements made above are true to my knowledge.

Verified at [place] on this [date]

DEPONENT.".'.

೭೯೮ 6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— SEC. 1] ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪ 20. (1) The Commercial Courts, Commercial Division and Commercial Appellate Repeal and savings. Division of High Courts (Amendment) Ordinance, 2018 is hereby repealed.

Ordinance 3 of 2018.

19. Save as otherwise provided, the provisions of this Act shall apply only to cases relating to commercial disputes filed on or after the date of commencement of this Act.

(2) Notwithstanding the repeal of the said Ordinance, anything done or any action taken under the said Ordinance shall deemed to have been done or taken under the corresponding provisions of this Act.

Application of provisions of this Act to cases filed on or after its commence- ment.

20. (1) The Commercial Courts, Commercial Division and Commercial Appellate Repeal and savings.

Division of High Courts (Amendment) Ordinance, 2018 is hereby repealed.

Ordinance 3 of 2018.

————

REGISTERED NO. DL—(N)04/0007/2003—18

jftLVªh lañ Mhñ ,yñ—(,u)04@0007@2003—18

DR . G. NARAYANA RAJU, Secretary to the Govt. of India.

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

MANOJ KUMAR

Digitally signed by MANOJ KUMAR Date: 2018.08.21 17:51:34 +05'30'

————

MGIPMRND—1689GI(S3)—21-08-2018.

P.R. 62

ಕರ್ನಾಟಕ ರಾಜ್ಯಪಾಲರ ಆದೇಶಾನುಸಾರ ಮತ್ತು ಅವರ ಹೆಸರಿನಲ್ಲಿ,

vlk/kkj.k

SC - 20

ಆರ್. ಶ್ರೀನಿವಾಸ,

ಸಹಾಯಕ ಪ್ರಾರೂಪಕಾರ ಮತ್ತು ಪದನಿಮಿತ್ತ DR . G. NARAYANA RAJU, ಸರ್ಕಾರದ ಅಧೀನ ಕಾರ್ಯದರ್ಶಿ, Secretary to the Govt. of India. ಸಂಸದೀಯ ವ್ಯವಹಾರಗಳ ಇಲಾಖೆ.

EXTRAORDINARY Hkkx II — [k.M 1 PART II — Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY

ಸಂಸದೀಯ ವ್ಯವಹಾರಗಳ ಸಚಿವಾಲಯ

ಅಧಿಸೂಚನೆ

lañ 34] ubZ fnYyh] 'kfuokj] vxLr 11] 2018@ Jko.k 20] 1940 ¼'kd½ No. 34] NEW DELHI, SATURDAY, AUGUST 11, 2018/SHRAVANA 20, 1940 (SAKA)

ಸಂಖ್ಯೆ: ಸಂವ್ಯಶಾಇ 30 ಕೇಶಾಪ್ರ 2018, ಬೆಂಗಳೂರು, ದಿನಾಂಕ: 14-09-2018.

bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA Separate paging is given to this Part in order that it may be filed as a separate compilation.

ದಿನಾಂಕ: 11-08-2018 ರಂದು ಭಾರತ ಸರ್ಕಾರದ ಗೆಜೆಟ್‌ನ ವಿಶೇಷ ಸಂಚಿಕೆಯ Part-II Section-1 ರಲ್ಲಿ ಪ್ರಕಟವಾದ The Constitution (One hundred and second Amendment) Act, ²⁰¹⁸ ಅನ್ನು ಸಾರ್ವಜನಿಕರ ಮಾಹಿತಿಗಾಗಿ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರದಲ್ಲಿ ಮರು ಪ್ರಕಟಿಸಲಾಗಿದೆ.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 11th August, 2018/Shravana 20, 1940 (Saka)

The following Act of Parliament received the assent of the President on the

11th August, 2018, and is hereby published for general information:—

THE CONSTITUTION (ONE HUNDRED AND SECOND AMENDMENT) ACT, 2018

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

[11th August, 2018.]

MANOJ KUMAR

Digitally signed by MANOJ KUMAR Date: 2018.08.21 17:51:34 +05'30' MGIPMRND—1689GI(S3)—21-08-2018.

An Act further to amend the Constitution of India.

BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—

1. (1) This Act may be called the Constitution (One Hundred and Second Amendment) Short title and commencement.

Act, 2018.

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

(2) It shall come into force on such date as the Central Government may, by notification

MANOJ KUMAR

Digitally signed by MANOJ KUMAR Date: 2018.08.21 17:51:34 +05'30' MGIPMRND—1689GI(S3)—21-08-2018.

in the Official Gazette, appoint.

Amendment of article 338.

In article 338 of the Constitution, in clause (10), the words, brackets and figures "to such other backward classes as the President may, on receipt of the report of a Commission appointed under clause (1) of article 340, by order specify and also" shall be omitted. ↩

ಭಾಗ ೪ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೭೯೯ 2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

3. After article 338A of the Constitution, the following article shall be inserted, namely:—

Insertion of new article 338B.

"338B. (1) There shall be a Commission for the socially and educationally backward classes to be known as the National Commission for Backward Classes.

National Commission for Backward Classes.

(2) Subject to the provisions of any law made in this behalf by Parliament, the Commission shall consist of a Chairperson, Vice-Chairperson and three other Members and the conditions of service and tenure of office of the Chairperson, Vice-Chairperson and other Members so appointed shall be such as the President may by rule determine.

(3) The Chairperson, Vice-Chairperson and other Members of the Commission shall be appointed by the President by warrant under his hand and seal.

(4) The Commission shall have the power to regulate its own procedure.

(5) It shall be the duty of the Commission—

(a) to investigate and monitor all matters relating to the safeguards provided for the socially and educationally backward classes under this Constitution or under any other law for the time being in force or under any order of the Government and to evaluate the working of such safeguards;

(b) to inquire into specific complaints with respect to the deprivation of rights and safeguards of the socially and educationally backward classes;

(c) to participate and advise on the socio-economic development of the socially and educationally backward classes and to evaluate the progress of their development under the Union and any State;

(d) to present to the President, annually and at such other times as the Commission may deem fit, reports upon the working of those safeguards;

(e) to make in such reports the recommendations as to the measures that should be taken by the Union or any State for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the socially and educationally backward classes; and

(f ) to discharge such other functions in relation to the protection, welfare and development and advancement of the socially and educationally backward classes as the President may, subject to the provisions of any law made by Parliament, by rule specify.

(6) The President shall cause all such reports to be laid before each House of Parliament along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the Union and the reasons for the non-acceptance, if any, of any of such recommendations.

(7) Where any such report, or any part thereof, relates to any matter with which any State Government is concerned, a copy of such report shall be forwarded to the State Government which shall cause it to be laid before the Legislature of the State along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the State and the reasons for the non-acceptance, if any, of any of such recommendations.

(8) The Commission shall, while investigating any matter referred to in sub-clause (a) or inquiring into any complaint referred to in sub-clause (b) of clause (5), (b) requiring the discovery and production of any document;

(d) requisitioning any public record or copy thereof from any court or ೮೦೦ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪ SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 office;

(e) issuing commissions for the examination of witnesses and documents;

(f) any other matter which the President may, by rule, determine.

have all the powers of a civil court trying a suit and in particular in respect of the following matters, namely:—

(9) The Union and every State Government shall consult the Commission on all (a) summoning and enforcing the attendance of any person from any part major policy matters affecting the socially and educationally backward classes.".

of India and examining him on oath;

4. After article 342 of the Constitution, the following article shall be inserted, namely:—

(b) requiring the discovery and production of any document;

(d) requisitioning any public record or copy thereof from any court or

office;

Insertion of new article 342 A. Socially and educationally backward classes.

(e) issuing commissions for the examination of witnesses and documents;

"342A. (1) The President may with respect to any State or Union territory, and where it is a State, after consultation with the Governor thereof, by public notification, specify the socially and educationally backward classes which shall for the purposes of this Constitution be deemed to be socially and educationally backward classes in relation to that State or Union territory, as the case may be.

(f) any other matter which the President may, by rule, determine.

(9) The Union and every State Government shall consult the Commission on all

major policy matters affecting the socially and educationally backward classes.".

(2) Parliament may by law include in or exclude from the Central List of socially and educationally backward classes specified in a notification issued under clause (1) any socially and educationally backward class, but save as aforesaid a notification issued under the said clause shall not be varied by any subsequent notification.".

4. After article 342 of the Constitution, the following article shall be inserted, namely:—

5. In article 366 of the Constitution, after clause (26B), the following clause shall be Amendment of article 366.

inserted, namely:—

'(26C) "socially and educationally backward classes" means such backward classes as are so deemed under article 342A for the purposes of this Constitution;'.

Insertion of new article 342 A. Socially and educationally backward classes.

————

5. In article 366 of the Constitution, after clause (26B), the following clause shall be

DR . G. NARAYANA RAJU, Secretary to the Govt. of India.

Amendment of article 366.

inserted, namely:—

'(26C) "socially and educationally backward classes" means such backward

classes as are so deemed under article 342A for the purposes of this Constitution;'.

————

DR . G. NARAYANA RAJU, Secretary to the Govt. of India.

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

Digitally signed by MANOJ KUMAR Date: 2018.08.11 18:36:06 +05'30' MGIPMRND—1643GI(S3)—11-08-2018.

MANOJ KUMAR P.R. 63

ಕರ್ನಾಟಕ ರಾಜ್ಯಪಾಲರ ಆದೇಶಾನುಸಾರ ಮತ್ತು ಅವರ ಹೆಸರಿನಲ್ಲಿ, SC - 20

ಆರ್. ಶ್ರೀನಿವಾಸ,

ಸಹಾಯಕ ಪ್ರಾರೂಪಕಾರ ಮತ್ತು ಪದನಿಮಿತ್ತ

ಸರ್ಕಾರದ ಅಧೀನ ಕಾರ್ಯದರ್ಶಿ,

ಸಂಸದೀಯ ವ್ಯವಹಾರಗಳ ಇಲಾಖೆ.

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

Digitally signed by MANOJ KUMAR Date: 2018.08.11 18:36:06 +05'30' MGIPMRND—1643GI(S3)—11-08-2018.

MANOJ KUMARभाग II — खण्ड ¹ PART II — Section 1 ಭಾಗ ೪ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೮೦೧

प्राधिकार से प्रकाशित

PUBLISHED BY AUTHORITY

ಸಂಸದೀಯ ವ್ಯವಹಾರಗಳ ಸಚಿವಾಲಯ

सं॰ 40] नई दिल्ली, शुक्रवार, अगस्त 17, 2018/ श्रावण 26, 1940 (शक)

ಅಧಿಸೂಚನೆ

No. 40] NEW DELHI, FRIDAY, AUGUST 17, 2018/SHRAVANA 26, 1940 (SAKA)

ಸಂಖ್ಯೆ: ಸಂವ್ಯಶಾಇ 36 ಕೇಶಾಪ್ರ 2018, ಬೆಂಗಳೂರು, ದಿನಾಂಕ: 14-09-2018.

इस भाग में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके।

Separate paging is given to this Part in order that it may be filed as a separate compilation.

ಪ್ರಕಟಿಸಲಾಗಿದೆ.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 17th August, 2018/Shravana 26, 1940 (Saka) The following Act of Parliament received the assent of the President on the 17th August, 2018, and is hereby published for general information:—

THE INSOLVENCY AND BANKRUPTCY CODE

(SECOND AMENDMENT) ACT, 2018

NO. 26 OF 2018

[17th August, 2018.] An Act further to amend the Insolvency and Bankruptcy Code, 2016.

BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—

1. (1) This Act may be called the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018.

(2) It shall be deemed to have come into force on the 6th day of June, 2018.

In the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the principal Act), in section 3, in clause (12), for the word "repaid", the word "paid" shall be substituted. ↩

೮೦೨ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪ 2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

3. In section 5 of the principal Act,—

Amendment of section 5.

(i) after clause (5), the following clause shall be inserted, namely:—

'(5A) "corporate guarantor" means a corporate person who is the surety in a contract of guarantee to a corporate debtor;';

(ii) in clause (8), in sub-clause (f), the following Explanation shall be inserted, namely:—

'Explanation.—For the purposes of this sub-clause,—

(i) any amount raised from an allottee under a real estate project shall be deemed to be an amount having the commercial effect of a borrowing; and

16 of 2016.

(ii) the expressions, "allottee" and "real estate project" shall have the meanings respectively assigned to them in clauses (d) and (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016;';

(iii) in clause (12), the following proviso shall be inserted, namely:—

"Provided that where the interim resolution professional is not appointed in the order admitting application under section 7, 9 or section 10, the insolvency commencement date shall be the date on which such interim resolution professional is appointed by the Adjudicating Authority;";

(iv) in clause (21), for the word "repayment", the word "payment" shall be substituted;

(v) after clause (24), the following clause shall be inserted, namely:—

'(24A) "related party", in relation to an individual, means—

(a) a person who is a relative of the individual or a relative of the spouse of the individual;

(b) a partner of a limited liability partnership, or a limited liability partnership or a partnership firm, in which the individual is a partner;

(c) a person who is a trustee of a trust in which the beneficiary of the trust includes the individual, or the terms of the trust confers a power on the trustee which may be exercised for the benefit of the individual;

(d) a private company in which the individual is a director and holds along with his relatives, more than two per cent. of its share capital;

(e) a public company in which the individual is a director and holds along with relatives, more than two per cent. of its paid-up share capital;

(f) a body corporate whose board of directors, managing director or manager, in the ordinary course of business, acts on the advice, directions or instructions of the individual;

(g) a limited liability partnership or a partnership firm whose partners or employees in the ordinary course of business, act on the advice, directions or instructions of the individual;

ಭಾಗ ೪ SEC. ¹] THE GAZETTE OF INDIA EXTRAORDINARY ³ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೮೦೩

(h) a person on whose advice, directions or instructions, the individual is accustomed to act;

(i) a company, where the individual or the individual along with its related party, own more than fifty per cent. of the share capital of the company or controls the appointment of the board of directors of the company.

Explanation.—For the purposes of this clause,—

(a) "relative", with reference to any person, means anyone who is related to another, in the following manner, namely:—

(i) members of a Hindu Undivided Family,

(ii) husband,

(iii) wife,

(iv) father,

(v) mother,

(vi) son,

(vii) daughter,

(viii) son's daughter and son,

(ix) daughter's daughter and son,

(x) grandson's daughter and son,

(xi) granddaughter's daughter and son,

(xii) brother,

(xiii) sister,

(xiv) brother's son and daughter,

(xv) sister's son and daughter,

(xvi) father's father and mother,

(xvii) mother's father and mother,

(xviii) father's brother and sister,

(xix) mother's brother and sister, and

(b) wherever the relation is that of a son, daughter, sister or brother, their spouses shall also be included;'.

Amendment of section 7.

4. In section 7 of the principal Act, in sub-section (1), for the words "other financial creditors", the words "other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government," shall be substituted.

5. In section 8 of the principal Act,—

Amendment of section 8.

(a) in sub-section (2),—

(i) in clause (a), for the words "if any, and", the words "if any, or" shall be substituted;

(ii) in clause (b), for the word "repayment", the word "payment" shall be substituted;

೮೦೪ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪ 4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

(b) in the Explanation, for the word "repayment", the word "payment" shall be substituted.

6. In section 9 of the principal Act,—

Amendment of section 9.

(a) in sub-section (3),—

(i) in clause (c), for the words "by the corporate debtor; and", the words "by the corporate debtor, if available;" shall be substituted;

(ii) for clause (d), the following clauses shall be substituted, namely:—

"(d) a copy of any record with information utility confirming that there is no payment of an unpaid operational debt by the corporate debtor, if available; and

(e) any other proof confirming that there is no payment of an unpaid operational debt by the corporate debtor or such other information, as may be prescribed.";

(b) in sub-section (5),—

(A) in clause (i), in sub-clause (b), for the word "repayment",

the word "payment" shall be substituted;

(B) in clause (ii), in sub-clause (b), for the word "repayment",

the word "payment" shall be substituted.

7. In section 10 of the principal Act,—

Amendment of section 10.

(a) for sub-section (3), the following sub-section shall be substituted, namely:—

"(3) The corporate applicant shall, along with the application, furnish—

(a) the information relating to its books of account and such

other documents for such period as may be specified;

(b) the information relating to the resolution professional proposed to be appointed as an interim resolution professional; and

(c) the special resolution passed by shareholders of the corporate debtor or the resolution passed by at least three-fourth of the total number of partners of the corporate debtor, as the case may be, approving filing of the application.";

(b) in sub-section (4),—

(i) in clause (a), after the words "if it is complete", the words "and no disciplinary proceeding is pending against the proposed resolution professional" shall be inserted;

(ii) in clause (b), after the words "if it is incomplete", the words "or any disciplinary proceeding is pending against the proposed resolution professional" shall be inserted.

8. In section 12 of the principal Act, in sub-section (2), for the word Amendment of section 12.

"seventy-five", the word "sixty-six" shall be substituted.

9. After section 12 of the principal Act, the following section shall be inserted, Insertion of new section 12A.

namely:—

"12A. The Adjudicating Authority may allow the withdrawal of application admitted under section 7 or section 9 or section 10, on an application made by the applicant with the approval of ninety per cent. voting share of the committee of creditors, in such manner as may be specified.".

Withdrawal of application admitted under section 7, 9 or 10.

ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೮೦೫ ಭಾಗ ೪ SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5

10. In section 14 of the principal Act, for sub-section (3), the following Amendment of section 14.

sub-section shall be substituted, namely:—

"(3) The provisions of sub-section (1) shall not apply to—

(a) such transaction as may be notified by the Central Government in

consultation with any financial regulator;

(b) a surety in a contract of guarantee to a corporate debtor.".

11. In section 15 of the principal Act, in sub-section (1), in clause (c), for the Amendment of section 15.

word "claims", the words "claims, as may be specified" shall be substituted.

Amendment of section 16.

12. In section 16 of the principal Act, in sub-section (5), for the words "shall not exceed thirty days from date of his appointment", the words and figures "shall continue till the date of appointment of the resolution professional under section 22" shall be substituted.

13. In section 17 of the principal Act, in sub-section (2),—

Amendment of section 17.

(i) in clause (d), for the words "may be specified.", the words "may be

specified; and" shall be substituted;

(ii) after clause (d), the following clause shall be inserted, namely:—

"(e) be responsible for complying with the requirements under any

law for the time being in force on behalf of the corporate debtor.".

14. In section 18 of the principal Act, in the Explanation, for the word Amendment of section 18.

"sub-section", the word "section" shall be substituted.

15. In section 21 of the principal Act,—

Amendment of section 21.

(i) in sub-section (2),—

(a) in the proviso, for the words "related party to whom a corporate debtor owes a financial debt", the words, brackets, figures and letter "financial creditor or the authorised representative of the financial creditor referred to in sub-section (6) or sub-section (6A) or sub-section (5) of section 24, if it is a related party of the corporate debtor," shall be substituted;

(b) after the proviso, the following proviso shall be inserted, namely:—

"Provided further that the first proviso shall not apply to a financial creditor, regulated by a financial sector regulator, if it is a related party of the corporate debtor solely on account of conversion or substitution of debt into equity shares or instruments convertible into equity shares, prior to the insolvency commencement date.";

(ii) in sub-section (3), for the word "Where", the words, brackets, figures

and letter "Subject to sub-sections (6) and (6A), where" shall be substituted;

(iii) in sub-section (6), in the opening portion, the words "or issued as

securities" shall be omitted;

(iv) after sub-section (6), the following sub-sections shall be inserted,

namely:—

"(6A) Where a financial debt—

(a) is in the form of securities or deposits and the terms of the financial debt provide for appointment of a trustee or agent to act as authorised representative for all the financial creditors, such trustee or agent shall act on behalf of such financial creditors;

6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— ೮೦೬ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪

(b) is owed to a class of creditors exceeding the number as may be specified, other than the creditors covered under clause (a) or sub-section (6), the interim resolution professional shall make an application to the Adjudicating Authority along with the list of all financial creditors, containing the name of an insolvency professional, other than the interim resolution professional, to act as their authorised representative who shall be appointed by the Adjudicating Authority prior to the first meeting of the committee of creditors;

(c) is represented by a guardian, executor or administrator, such person shall act as authorised representative on behalf of such financial creditors,

and such authorised representative under clause (a) or clause (b) or clause (c) shall attend the meetings of the committee of creditors, and vote on behalf of each financial creditor to the extent of his voting share.

(6B) The remuneration payable to the authorised representative—

(i) under clauses (a) and (c) of sub-section (6A), if any, shall be as per the terms of the financial debt or the relevant documentation; and

(ii) under clause (b) of sub-section (6A) shall be as specified which shall form part of the insolvency resolution process costs.";

(v) for sub-sections (7) and (8), the following sub-sections shall be substituted, namely:—

"(7) The Board may specify the manner of voting and the determining of the voting share in respect of financial debts covered under sub-sections (6) and (6A).

(8) Save as otherwise provided in this Code, all decisions of the committee of creditors shall be taken by a vote of not less than fifty-one per cent. of voting share of the financial creditors:

Provided that where a corporate debtor does not have any financial creditors, the committee of creditors shall be constituted and shall comprise of such persons to exercise such functions in such manner as may be specified.".

16. In section 22 of the principal Act,—

Amendment of section 22.

(a) in sub-section (2), for the word, "seventy-five", the word "sixty-six" shall be substituted;

(b) in sub-section (3),—

(i) in clause (a), after the words "resolution professional", the words "subject to a written consent from the interim resolution professional in the specified form" shall be inserted;

(ii) in clause (b), after the words "appointment of the proposed resolution professional", the words "along with a written consent from the proposed resolution professional in the specified form" shall be inserted.

17. In section 23 of the principal Act, in sub-section (1), the following proviso Amendment of section 23.

shall be inserted, namely:—

"Provided that the resolution professional shall, if the resolution plan under sub-section (6) of section 30 has been submitted, continue to manage theಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೮೦೭ ಭಾಗ ೪ SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7 operations of the corporate debtor after the expiry of the corporate insolvency resolution process period until an order is passed by the Adjudicating Authority under section 31.".

18. In section 24 of the principal Act,—

Amendment of section 24.

(i) in sub-section (3), in clause (a), for the words "Committee of creditors", the words, brackets, figures and letter "committee of creditors, including the authorised representatives referred to in sub-sections (6) and (6A) of section 21 and sub-section (5)" shall be substituted;

(ii) in sub-section (5), for the words "Any creditor", the words, brackets, figures and letters "Subject to sub-sections (6), (6A) and (6B) of section 21, any creditor" shall be substituted.

19. After section 25 of the principal Act, the following section shall be inserted,

namely:-—

Insertion of new section 25A.

Rights and duties of authorised representative of financial creditors.

'25A. (1) The authorised representative under sub-section (6) or sub-section (6A) of section 21 or sub-section (5) of section 24 shall have the right to participate and vote in meetings of the committee of creditors on behalf of the financial creditor he represents in accordance with the prior voting instructions of such creditors obtained through physical or electronic means.

(2) It shall be the duty of the authorised representative to circulate the agenda and minutes of the meeting of the committee of creditors to the financial creditor he represents.

(3) The authorised representative shall not act against the interest of the financial creditor he represents and shall always act in accordance with their prior instructions:

Provided that if the authorised representative represents several financial creditors, then he shall cast his vote in respect of each financial creditor in accordance with instructions received from each financial creditor, to the extent of his voting share:

Provided further that if any financial creditor does not give prior instructions through physical or electronic means, the authorised representative shall abstain from voting on behalf of such creditor.

(4) The authorised representative shall file with the committee of creditors any instructions received by way of physical or electronic means, from the financial creditor he represents, for voting in accordance therewith, to ensure that the appropriate voting instructions of the financial creditor he represents is correctly recorded by the interim resolution professional or resolution professional, as the case may be.

Explanation.—For the purposes of this section, the "electronic means"

shall be such as may be specified.'.

20. In section 27 of the principal Act, for sub-section (2), the following Amendment of section 27.

sub-section shall be substituted, namely:—

"(2) The committee of creditors may, at a meeting, by a vote of sixty-six per cent. of voting shares, resolve to replace the resolution professional appointed under section 22 with another resolution professional, subject to a written consent from the proposed resolution professional in the specified form.".

21. In section 28 of the principal Act, in sub-section (3), for the word, Amendment of section 28.

"seventy-five", the word "sixty-six" shall be substituted.

8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— ೮೦೮ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪

22. In section 29A of the principal Act,—

(i) in clause (c),—

Amendment of section 29A.

(A) for the words "has an account,", the words "at the time of submission of the resolution plan has an account," shall be substituted;

10 of 1949.

(B) after the words and figures "the Banking Regulation Act, 1949", the words "or the guidelines of a financial sector regulator issued under any other law for the time being in force," shall be inserted;

'Provided further that nothing in this clause shall apply to a resolution applicant where such applicant is a financial entity and is not a related party to the corporate debtor.

Explanation I.—For the purposes of this proviso, the expression "related party" shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corporate debtor and is a related party of the corporate debtor solely on account of conversion or substitution of debt into equity shares or instruments convertible into equity shares, prior to the insolvency commencement date.

Explanation II.—For the purposes of this clause, where a resolution applicant has an account, or an account of a corporate debtor under the management or control of such person or of whom such person is a promoter, classified as non-performing asset and such account was acquired pursuant to a prior resolution plan approved under this Code, then, the provisions of this clause shall not apply to such resolution applicant for a period of three years from the date of approval of such resolution plan by the Adjudicating Authority under this Code;';

(ii) for clause (d), the following clause shall be substituted, namely:—

"(d) has been convicted for any offence punishable with imprisonment—

(i) for two years or more under any Act specified under

the Twelfth Schedule; or

(ii) for seven years or more under any other law for the

time being in force:

Provided that this clause shall not apply to a person after the expiry of a period of two years from the date of his release from imprisonment:

Provided further that this clause shall not apply in relation to a connected person referred to in clause (iii) of Explanation I;";

(iii) in clause (e), the following proviso shall be inserted, namely:—

"Provided that this clause shall not apply in relation to a connected person referred to in clause (iii) of Explanation I;";

(iv) in clause (g), the following proviso shall be inserted, namely:—

"Provided that this clause shall not apply if a preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction has taken place prior to the acquisition of the corporate debtor by the resolution applicant pursuant to a resolution plan approved under this Code or pursuant to a scheme orಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೮೦೯ ಭಾಗ ೪ SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 9 plan approved by a financial sector regulator or a court, and such resolution applicant has not otherwise contributed to the preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction;";

(v) in clause (h),—

(A) for the words "an enforceable guarantee", the words "a guarantee" shall be substituted;

(B) after the words "under this Code", the words "and such guarantee has been invoked by the creditor and remains unpaid in full or part" shall be inserted;

(vi) in clause (i), for the words "has been", the word "is" shall be substituted;

(vii) the Explanation occurring after clause (j) shall be numbered as Explanation I, and in Explanation I as so numbered, for the proviso, the following provisos shall be substituted, namely:—

'Provided that nothing in clause (iii) of Explanation I shall apply to a resolution applicant where such applicant is a financial entity and is not a related party of the corporate debtor:

Provided further that the expression "related party" shall not include a financial entity, regulated by a financial sector regulator, if it is a financial creditor of the corporate debtor and is a related party of the corporate debtor solely on account of conversion or substitution of debt into equity shares or instruments convertible into equity shares, prior to the insolvency commencement date;';

(viii) after Explanation I as so numbered, the following Explanation shall be inserted, namely:—

'Explanation II.—For the purposes of this section, "financial entity" shall mean the following entities which meet such criteria or conditions as the Central Government may, in consultation with the financial sector regulator, notify in this behalf, namely:—

(a) a scheduled bank;

(b) any entity regulated by a foreign central bank or a securities market regulator or other financial sector regulator of a jurisdiction outside India which jurisdiction is compliant with the Financial Action Task Force Standards and is a signatory to the International Organisation of Securities Commissions Multilateral Memorandum of Understanding;

42 of 1999.

(c) any investment vehicle, registered foreign institutional investor, registered foreign portfolio investor or a foreign venture capital investor, where the terms shall have the meaning assigned to them in regulation 2 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 made under the Foreign Exchange Management Act, 1999;

54 of 2002.

(d) an asset reconstruction company registered with the Reserve Bank of India under section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

(e) an Alternate Investment Fund registered with the Securities

and Exchange Board of India;

(f) such categories of persons as may be notified by the Central Government.'.

10 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— ೮೧೦ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪

23. In section 30 of the principal Act,—

Amendment of section 30.

(i) in sub-section (1), after the words "resolution plan", the words, figures and letter "along with an affidavit stating that he is eligible under section 29A" shall be inserted;

(ii) in sub-section (2),—

(A) in clauses (a) and (b), for the word "repayment" at both the places where it occurs, the word "payment" shall be substituted;

(B) after clause (f), the following Explanation shall be inserted, namely:—

18 of 2013.

"Explanation.—For the purposes of clause (e), if any approval of shareholders is required under the Companies Act, 2013 or any other law for the time being in force for the implementation of actions under the resolution plan, such approval shall be deemed to have been given and it shall not be a contravention of that Act or law.";

(iii) in sub-section (4),—

(a) for the word "seventy-five", the word "sixty-six" shall be substituted;

(b) after the third proviso, the following proviso shall be inserted, namely:—

ord. 6 of 2018.

"Provided also that the eligibility criteria in section 29A as amended by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 shall apply to the resolution applicant who has not submitted resolution plan as on the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018.".

24. In section 31 of the principal Act,—

Amendment of section 31.

(a) in sub-section (1), the following proviso shall be inserted, namely:—

"Provided that the Adjudicating Authority shall, before passing an order for approval of resolution plan under this sub-section, satisfy that the resolution plan has provisions for its effective implementation.";

(b) after sub-section (3), the following sub-section shall be inserted namely:—

"(4) The resolution applicant shall, pursuant to the resolution plan approved under sub-section (1), obtain the necessary approval required under any law for the time being in force within a period of one year from the date of approval of the resolution plan by the Adjudicating Authority under sub-section (1) or within such period as provided for in such law, whichever is later:

12 of 2003.

Provided that where the resolution plan contains a provision for combination, as referred to in section 5 of the Competition Act, 2002, the resolution applicant shall obtain the approval of the Competition Commission of India under that Act prior to the approval of such resolution plan by the committee of creditors.".

Amendment of section 33.

25. In section 33 of the principal Act, in sub-section (2), after the words "decision of the committee of creditors", the words "approved by not less than sixty-six per cent. of the voting share" shall be inserted.

ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೮೧೧ ಭಾಗ ೪ SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 11

26. In section 34 of the principal Act,—

Amendment of section 34.

(a) in sub-section (1), for the words and figures "Chapter II shall", the words and figures "Chapter II shall, subject to submission of a written consent by the resolution professional to the Adjudicatory Authority in specified form," shall be substituted;

(b) in sub-section (4),—

(i) in clause (b), for the words "in writing", the words "in writing; or"

shall be substituted;

(ii) after clause (b), the following clause shall be inserted, namely:—

"(c) the resolution professional fails to submit written consent

under sub-section (1).";

words, brackets and letters "clauses (a) and (c)" shall be substituted;

(d) in sub-section (6), after the words "another insolvency professional", the words "along with written consent from the insolvency professional in the specified form," shall be inserted.

27. In section 42 of the principal Act, after the words "of the liquidator", the Amendment of section 42.

words "accepting or" shall be inserted.

28. In section 45 of the principal Act, in sub-section (1), the words and figures Amendment of section 45.

"of section 43" shall be omitted.

29. In section 60 of the principal Act,—

Amendment of section 60.

(a) in sub-section (2), for the words "bankruptcy of a personal guarantor of such corporate debtor", the words "liquidation or bankruptcy of a corporate guarantor or personal guarantor, as the case may be, of such corporate debtor" shall be substituted;

(b) in sub-section (3), for the words "bankruptcy proceeding of a personal guarantor of the corporate debtor", the words "liquidation or bankruptcy proceeding of a corporate guarantor or personal guarantor, as the case may be, of the corporate debtor" shall be substituted.

30. In section 69 of the principal Act, for the words "On or after the insolvency Amendment of section 69.

commencement date, if", the word "If" shall be substituted.

31. In section 76 of the principal Act,—

Amendment of section 76.

(a) in the marginal heading, for the word "repayment", the word "payment"

shall be substituted;

(b) in clause (a), for the word "repayment", the word "payment" shall be

substituted.

32. In section 196 of the principal Act, in sub-section (1),—

Amendment of section 196.

(i) after clause (a), the following clause shall be inserted namely:—

"(aa) promote the development of, and regulate, the working and practices of, insolvency professionals, insolvency professional agencies and information utilities and other institutions, in furtherance of the purposes of this Code;";

(ii) in clause (c), for the words "for the registration", the words "for carrying out the purposes of this Code, including fee for registration and renewal" shall be substituted.

೮೧೨ 12 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪

Amendment of section 231.

33. In section 231 of the principal Act, for the words "Adjudicating Authority" at both the places where they occur, the words "Adjudicating Authority or the Board" shall be substituted.

34. After section 238 of the principal Act, the following section shall be inserted, namely:—

Insertion of new section 238A.

Limitation.

36 of 1963.

"238A. The provisions of the Limitation Act, 1963 shall, as far as may be, apply to the proceedings or appeals before the Adjudicating Authority, the National Company Law Appellate Tribunal, the Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal, as the case may be.".

35. In section 239 of the principal Act, in sub-section (2), after clause (e), the following clause shall be inserted, namely:—

Amendment of section 239.

"(ea) other proof confirming that there is no payment of an unpaid operational debt by the corporate debtor or such other information under clause (e) of sub-section (3) of section 9;".

36. In section 240 of the principal Act, in sub-section (2),—

Amendment of section 240.

(i) clause (g) shall be omitted;

(ii) after clause (j), the following clause shall be inserted, namely:—

"(ja) the last date for submission of claims under clause (c) of sub-section (1) of section 15;";

(iii) after clause (n), the following clauses shall be inserted, namely:—

"(na) the number of creditors within a class of creditors under clause (b) of sub-section (6A) of section 21;

(nb) the remuneration payable to authorised representative under clause (ii) of the proviso to sub-section (6B) of section 21;

(nc) the manner of voting and determining the voting share in respect

of financial debts under sub-section (7) of section 21;".

37. After section 240 of the principal Act, the following section shall be inserted, namely:—

Insertion of new section 240A.

'240A. (1) Notwithstanding anything to the contrary contained in this Code, the provisions of clauses (c) and (h) of section 29A shall not apply to the resolution applicant in respect of corporate insolvency resolution process of any micro, small and medium enterprises.

Application of this Code to micro, small and medium enterprises.

(2) Subject to sub-section (1), the Central Government may, in the public interest, by notification, direct that any of the provisions of this Code shall—

(a) not apply to micro, small and medium enterprises; or

(b) apply to micro, small and medium enterprises, with such modifications as may be specified in the notification.

(3) A draft of every notification proposed to be issued under sub-section (2), shall be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions.

(4) If both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or shall be issued only in such modified form as may be agreed upon by both the Houses, as the case may be.

ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ೮೧೩ ಭಾಗ ೪ SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 13

(5) The period of thirty days referred to in sub-section (3) shall not include any period during which the House referred to in sub-section (4) is prorogued or adjourned for more than four consecutive days.

(6) Every notification issued under this section shall be laid, as soon as may be after it is issued, before each House of Parliament.

27 of 2006.

Explanation.—For the purposes of this section, the expression "micro, small and medium enterprises" means any class or classes of enterprises classified as such under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006.'.

38. After the Eleventh Schedule to the principal Act, the following Schedule Insertion of new Schedule.

shall be inserted, namely:—

"THE TWELFTH SCHEDULE

[See clause (d) of section 29A]

ACTS FOR THE PURPOSES OF CLAUSE (d) OF SECTION 29A

(1) The Foreign Trade (Development and Regulation) Act, 1922 (22 of 1922);

(2) The Reserve Bank of India Act, 1934 (2 of 1934);

(3) The Central Excise Act, 1944 (1 of 1944);

(4) The Prevention of Food Adulteration Act, 1954 (37 of 1954);

(5) The Essential Commodities Act, 1955 (10 of 1955);

(6) The Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(7) The Income-tax Act, 1961 (43 of 1961);

(8) The Customs Act, 1962 (52 of 1962);

(9) The Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974);

(10) The Conservation of Foreign Exchange and Prevention of Smuggling

Activities Act, 1974 (52 of 1974);

(11) The Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981);

(12) The Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986);

(13) The Environment (Protection) Act, 1986 (29 of 1986);

(14) The Prohibition of Benami Property Transactions Act, 1988 (45 of 1988);

(15) The Prevention of Corruption Act, 1988 (49 of 1988);

(16) The Securities and Exchange Board of India Act, 1992 (15 of 1992);

(17) The Foreign Exchange Management Act, 1999 (42 of 1999);

(18) The Competition Act, 2002 (12 of 2003);

(19) The Prevention of Money-laundering Act, 2002 (15 of 2003);

(20) The Limited Liability Partnership Act, 2008 (6 of 2009);

(21) The Foreign Contribution (Regulation) Act, 2010 (42 of 2010);

(22) The Companies Act, 2013 (18 of 2013) or any previous company law;

(23) The Black Money (Undisclosed Foreign Income and Assets) and Imposition

R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19

of Tax Act, 2015 (22 of 2015);

Licensed to post without prepayment WPP No. 297(24) The Insolvency and Bankruptcy Code, 2016 (31 of 2016); 14 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— SEC. 1] ೮೧೪ ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಗುರುವಾರ, ನವೆಂಬರ್ ೧, ೨೦೧೮ ಭಾಗ ೪ (25) The Central Goods and Services Tax Act, 2017 (12 of 2017) and respective State Acts imposing State goods and services tax;

(23) The Black Money (Undisclosed Foreign Income and Assets) and Imposition

of Tax Act, 2015 (22 of 2015);

(24) The Insolvency and Bankruptcy Code, 2016 (31 of 2016);

be after it is issued, before each House of Parliament.".

(26) such other Acts as may be notified by the Central Government.

Every notification issued under this Schedule shall be laid, as soon as may

"Provided further that any party or parties to any proceedings relating to the winding up of companies pending before any Court immediately before the commencement of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, may file an application for transfer of such proceedings and the Court may by order transfer such proceedings to the Tribunal and the proceedings so transferred shall be dealt with by the Tribunal as an application for initiation of corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.".

31 of 2016.

(25) The Central Goods and Services Tax Act, 2017 (12 of 2017) and respective

40. (1) The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 is

State Acts imposing State goods and services tax;

Repeal and savings.

hereby repealed.

Amendment of section 434 of Act 18 of 2013.

Ord. 6 of 2018.

(26) such other Acts as may be notified by the Central Government.

39. In section 434 of the Companies Act, 2013, [as substituted by paragraph 34 of the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016], in sub-section (1), in clause (c), after the proviso, the following proviso shall be inserted, namely:—

Every notification issued under this Schedule shall be laid, as soon as may

31 of 2016.

(2) Notwithstanding such repeal, anything done or any action taken under the Insolvency and Bankruptcy Code, 2016, as amended by the said Ordinance, shall be be after it is issued, before each House of Parliament.". deemed to have been done or taken under the corresponding provisions of the said Code, as amended by this Act.

Amendment of section 434 of Act 18 of 2013.

————

31 of 2016.

40. (1) The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 is

Repeal and savings.

hereby repealed.

Ord. 6 of 2018.

DR . G. NARAYANA RAJU, Secretary to the Govt. of India.

31 of 2016.

(2) Notwithstanding such repeal, anything done or any action taken under the Insolvency and Bankruptcy Code, 2016, as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the said Code, as amended by this Act.

40. (1) The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 is

Repeal and savings.

hereby repealed.

Ord. 6 of 2018.

————

31 of 2016.

————

DR . G. NARAYANA RAJU, Secretary to the Govt. of India.

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

MGIPMRND—1671GI(S3)—17-08-2018.

MANOJ KUMAR

Digitally signed by MANOJ KUMAR Date: 2018.08.17 19:34:08 +05'30'

P.R. 64

SC - 20

DR . G. NARAYANA RAJU, ಕರ್ನಾಟಕ ರಾಜ್ಯಪಾಲರ ಆದೇಶಾನುಸಾರ ಮತ್ತು ಅವರ ಹೆಸರಿನಲ್ಲಿ, Secretary to the Govt. of India. ಆರ್. ಶ್ರೀನಿವಾಸ,

ಸಹಾಯಕ ಪ್ರಾರೂಪಕಾರ ಮತ್ತು ಪದನಿಮಿತ್ತ

ಸರ್ಕಾರದ ಅಧೀನ ಕಾರ್ಯದರ್ಶಿ,

ಸಂಸದೀಯ ವ್ಯವಹಾರಗಳ ಇಲಾಖೆ.

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

MGIPMRND—1671GI(S3)—17-08-2018.

MANOJ KUMAR

Digitally signed by MANOJ KUMAR Date: 2018.08.17 19:34:08 +05'30'

ಮುದ್ರಕರು ಹಾಗೂ ಪ್ರಕಾಶಕರು:- ಸಂಕಲನಾಧಿಕಾರಿಗಳು, ಕರ್ನಾಟಕ ರಾಜ್ಯಪತ್ರ, ಸರ್ಕಾರಿ ಕೇಂದ್ರ ಮುದ್ರಣಾಲಯ, ಬೆಂಗಳೂರು-59. UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

MGIPMRND—1671GI(S3)—17-08-2018.

MANOJ KUMAR

Digitally signed by MANOJ KUMAR Date: 2018.08.17 19:34:08 +05'30'