PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
793
¨sÁUÀ 4
(793)
¸ÀA¥ÀÄl 153
Volume 153
¨ÉAUÀ¼ÀÆgÀÄ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018 (PÁwðÃPÀ 10, ±ÀPÀ ªÀµÀð 1940)
Bengaluru, Thursday, November 1, 2018 (Karthika 10, Shaka Varsha 1940)
¸ÀAaPÉ 43
Issue 43
¨sÁUÀ 4
PÉÃAzÀæzÀ «zsÉÃAiÀÄPÀUÀ¼ÀÄ ªÀÄvÀÄÛ CªÀÅUÀ¼À ªÉÄÃ¯É ¥Àj²Ã®£Á ¸À«ÄwAiÀÄ ªÀgÀ¢UÀ¼ÀÄ,
PÉÃAzÀæzÀ C¢ü¤AiÀĪÀÄUÀ¼ÀÄ ªÀÄvÀÄÛ CzsÁåzÉñÀUÀ¼ÀÄ, PÉÃAzÀæ ¸ÀPÁðgÀzÀªÀgÀÄ ºÉÆgÀr¹zÀ
¸ÁªÀiÁ£Àå ±Á¸À£À§zÀÞ ¤AiÀĪÀÄUÀ¼ÀÄ ªÀÄvÀÄÛ ±Á¸À£À§zÀÞ DzÉñÀUÀ¼ÀÄ ªÀÄvÀÄÛ
gÁµÀÖç¥ÀwAiÀĪÀjAzÀ gÀavÀªÁV gÁdå ¸ÀPÁðgÀzÀªÀjAzÀ
¥ÀÄ£ÀB ¥ÀæPÀlªÁzÀ DzÉñÀUÀ¼ÀÄ
¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ
C¢ü¸ÀÆZÀ£É
¸ÀASÉå: ¸ÀAªÀå±ÁE 38 PÉñÁ¥Àæ 2018, ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 11-09-2018.
¢£ÁAPÀ: 21-08-2018 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section-1 gÀ°è ¥ÀæPÀlªÁzÀ The Com
mercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018 (No. 28 of 2018) C£ÀÄß
¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.
MINISTRY OF LAW AND JUSTICE
(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
20th August, 2018, and is hereby published for general information:—
THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND
COMMERCIAL APPELLATE DIVISION OF HIGH COURTS
(AMENDMENT) ACT, 2018
NO. 28 OF 2018
[20th August, 2018.]
An Act to amend the Commercial Courts, Commercial Division and
Commercial Appellate Division of High Courts Act, 2015.
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 Commercial Courts, Commercial Division and
Commercial Appellate Division of High Courts (Amendment) Act, 2018.
(2) Save as otherwise provided, it shall be deemed to have come into force on the
3rd day of May, 2018.
Short title
and
commence-
ment.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
794
¨sÁUÀ 4
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
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),—
(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:—
"COMMERCIAL COURTS, COMMERCIAL APPELLATE COURTS,
COMMERCIAL DIVISIONS AND COMMERCIAL APPELLATE DIVISIONS".
6. In section 3 of the principal Act,—
(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.";
(c) in sub-section (3),—
(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".
Amendment
of long title.
4 of 2016.
Amendment
of section 1.
Amendment
of section 2.
Substitution
of Chapter
heading.
Amendment
of section 3.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
795
¨sÁUÀ 4
7. After section 3 of the principal Act, the following section shall be inserted,
namely:—
"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.".
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.
10. In section 12 of the principal Act, in sub-section (1),—
(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:—
"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.
(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.
(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.
(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.
(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
substituted, namely:—
Insertion of
new section
3A.
Designation
of
Commercial
Appellate
Courts.
Amendment
of section 4.
Omission of
section 9.
Amendment
of section 12.
Insertion of
new Chapter
IIIA.
Pre-
Institution
Mediation
and
Settlement.
Amendment
of section 13.
39 of 1987.
39 of 1987.
36 of 1963.
26 of 1996.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
796
¨sÁUÀ 4
"(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:
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.".
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.
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.
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
words "Commercial Courts, Commercial Appellate Courts" shall be substituted.
17. After section 21 of the principal Act, the following section shall be inserted,
namely:—
"21A. (1) The Central Government may, by notification, make rules for
carrying out the provisions of this Act.
(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,—
(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;
Amendment
of section 14.
Amendment
of section 15.
Amendment
of section 17.
Amendment
of section 20.
Insertion of
new section
21A.
Power of
Central
Government
to make rules.
Amendment
of Schedule.
5 of 1908.
26 of 1996.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
797
¨sÁUÀ 4
(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.".'.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
798
¨sÁUÀ 4
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.
20. (1) The Commercial Courts, Commercial Division and Commercial Appellate
Division of High Courts (Amendment) Ordinance, 2018 is hereby repealed.
(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.
Repeal and
savings.
Ordinance 3
of 2018.
MANOJ
KUMAR
Digitally signed
by MANOJ
KUMAR
Date: 2018.08.21
17:51:34 +05'30'
P.R. 62
SC - 20
PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,
Dgï. ²æäªÁ¸À,
¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ
¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,
¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.
¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ
C¢ü¸ÀÆZÀ£É
¸ÀASÉå: ¸ÀAªÀå±ÁE 30 PÉñÁ¥Àæ 2018, ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 14-09-2018.
¢£ÁAPÀ: 11-08-2018 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section-1 gÀ°è ¥ÀæPÀlªÁzÀ The Constitution
(One hundred and second Amendment) Act, 2018 C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ ¥ÀæPÀn¸À¯ÁVzÉ.
THE CONSTITUTION (ONE HUNDRED AND SECOND
AMENDMENT) ACT, 2018
[11th August, 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)
Act, 2018.
(2) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint.
2. 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.
Short title and
commencement.
Amendment
of article
338.
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:—
DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
799
¨sÁUÀ 4
3. After article 338A of the Constitution, the following article shall be inserted, namely:—
“338B. (1) There shall be a Commission for the socially and educationally
backward classes to be known as the 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),
National
Commission
for Backward
Classes.
Insertion of
new article
338B.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
800
¨sÁUÀ 4
Insertion of
new article 342
A.
have all the powers of a civil court trying a suit and in particular in respect of the
following matters, namely:—
(a) summoning and enforcing the attendance of any person from any part
of India and examining him on oath;
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavits;
(d) requisitioning any public record or copy thereof from any court or
office;
(e) issuing commissions for the examination of witnesses and documents;
(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.".
4. After article 342 of the Constitution, the following article shall be inserted, namely:—
"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.
(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.".
5. In article 366 of the Constitution, after clause (26B), the following clause shall be
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;’.
Socially and
educationally
backward
classes.
Amendment
of article 366.
————
DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.
MANOJ
KUMAR
Digitally signed by
MANOJ KUMAR
Date: 2018.08.11
18:36:06 +05'30'
P.R. 63
SC - 20
PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,
Dgï. ²æäªÁ¸À,
¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ
¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,
¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
801
¨sÁUÀ 4
¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À ¸ÀaªÁ®AiÀÄ
C¢ü¸ÀÆZÀ£É
¸ÀASÉå: ¸ÀAªÀå±ÁE 36 PÉñÁ¥Àæ 2018, ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ: 14-09-2018.
¢£ÁAPÀ: 17-08-2018 gÀAzÀÄ ¨sÁgÀvÀ ¸ÀPÁðgÀzÀ UÉeÉmï£À «±ÉõÀ ¸ÀAaPÉAiÀÄ Part-II Section-1 gÀ°è ¥ÀæPÀlªÁzÀ The Insolvency
and Bankruptcy Code (Second Amendment) Act, 2018 (No. 26 of 2018) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV PÀ£ÁðlPÀ gÁdå¥ÀvÀæzÀ°è ªÀÄgÀÄ
¥ÀæPÀn¸À¯ÁVzÉ.
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.
2. 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.
Short title and
commencement.
Amendment
of section 3.
31 of 2016.
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:—
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
802
¨sÁUÀ 4
3. In section 5 of the principal Act,—
(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
(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;
Amendment
of section 5.
16 of 2016.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
803
¨sÁUÀ 4
(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;'.
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,—
(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;
Amendment
of section 7.
Amendment
of section 8.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
804
¨sÁUÀ 4
(b) in the Explanation, for the word "repayment", the word "payment"
shall be substituted.
6. In section 9 of the principal Act,—
(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,—
(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
"seventy-five", the word "sixty-six" shall be substituted.
9. After section 12 of the principal Act, the following section shall be inserted,
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.".
Amendment
of section 9.
Amendment
of section 10.
Amendment
of section 12.
Insertion of new
section 12A.
Withdrawal of
application
admitted
under section
7, 9 or 10.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
805
¨sÁUÀ 4
10. In section 14 of the principal Act, for sub-section (3), the following
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
word "claims", the words "claims, as may be specified" shall be substituted.
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),—
(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
"sub-section", the word "section" shall be substituted.
15. In section 21 of the principal Act,—
(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;
Amendment
of section 14.
Amendment
of section 15.
Amendment
of section 16.
Amendment
of section 17.
Amendment
of section 18.
Amendment
of section 21.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
806
¨sÁUÀ 4
(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,—
(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
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 the
Amendment of
section 22.
Amendment
of section 23.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
807
¨sÁUÀ 4
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,—
(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:-—
'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
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,
"seventy-five", the word "sixty-six" shall be substituted.
Amendment
of section 24.
Insertion of
new section
25A.
Rights and
duties of
authorised
representative
of financial
creditors.
Amendment
of section 27.
Amendment
of section 28.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
808
¨sÁUÀ 4
22. In section 29A of the principal Act,—
(i) in clause (c),—
(A) for the words "has an account,", the words "at the time of
submission of the resolution plan has an account," shall be
substituted;
(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;
(C) after the proviso, the following shall be inserted, namely:—
'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 or
Amendment
of section
29A.
10 of 1949.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
809
¨sÁUÀ 4
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;
(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;
(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.'.
42 of 1999.
54 of 2002.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
810
¨sÁUÀ 4
23. In section 30 of the principal Act,—
(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:—
"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:—
"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,—
(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:
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.".
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.
Amendment
of section 30.
Amendment
of section 31.
Amendment
of section 33.
12 of 2003.
18 of 2013.
ord. 6 of 2018.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
811
¨sÁUÀ 4
26. In section 34 of the principal Act,—
(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).";
(c) in sub-section (5), for the word, brackets and letter "clause (a)", the
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
words "accepting or" shall be inserted.
28. In section 45 of the principal Act, in sub-section (1), the words and figures
"of section 43" shall be omitted.
29. In section 60 of the principal Act,—
(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
commencement date, if", the word "If" shall be substituted.
31. In section 76 of the principal Act,—
(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),—
(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.
Amendment
of section 34.
Amendment
of section 42.
Amendment
of section 45.
Amendment
of section 60.
Amendment
of section 69.
Amendment
of section 76.
Amendment
of section
196.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
812
¨sÁUÀ 4
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:—
"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:—
"(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),—
(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:—
'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.
(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.
Amendment
of section
231.
Insertion of
new section
238A.
Limitation.
Amendment
of section
239.
Amendment
of section
240.
Insertion of
new section
240A.
Application
of this Code
to micro,
small and
medium
enterprises.
36 of 1963.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
813
¨sÁUÀ 4
(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.
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
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;
Insertion of
new Schedule.
27 of 2006.
PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀĪÁgÀ, £ÀªÉA§gï 1, 2018
814
¨sÁUÀ 4
(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);
(25) The Central Goods and Services Tax Act, 2017 (12 of 2017) and respective
State Acts imposing State goods and services tax;
(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
be after it is issued, before each House of Parliament.".
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:—
"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.".
40. (1) The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 is
hereby repealed.
(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.
Amendment
of section
434 of Act 18
of 2013.
Repeal and
savings.
Ord. 6 of
2018.
31 of 2016.
31 of 2016.
DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.
MANOJ KUMAR
Digitally signed by
MANOJ KUMAR
Date: 2018.08.17
19:34:08 +05'30'
P.R. 64
SC - 20
PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è,
Dgï. ²æäªÁ¸À,
¸ÀºÁAiÀÄPÀ ¥ÁægÀÆ¥ÀPÁgÀ ªÀÄvÀÄÛ ¥ÀzÀ¤«ÄvÀÛ
¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð,
¸ÀA¸À¢ÃAiÀÄ ªÀåªÀºÁgÀUÀ¼À E¯ÁSÉ.
R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19
Licensed to post without prepayment WPP No. 297
ªÀÄÄzÀæPÀgÀÄ ºÁUÀÆ ¥ÀæPÁ±ÀPÀgÀÄ:- ¸ÀAPÀ®£Á¢üPÁjUÀ¼ÀÄ, PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, ¸ÀPÁðj PÉÃAzÀæ ªÀÄÄzÀæuÁ®AiÀÄ, ¨ÉAUÀ¼ÀÆgÀÄ-59.