New Delhi, Aug. 12 -- Union Finance Minister Nirmala Sitharaman introduced a Bill in the the Lok Sabha on Tuesday, 12 August, that allows creditors to start an insolvency process outside a court for genuine business failures. The Bill aims to resolve such insolvency cases faster and in a cheaper way than it is done in the current system.

The Bill was introduced amid opposition protests over a separate matter concerning the Special Intensive Revision of electoral rolls in Bihar. Despite the uproar, the House approved Sitharaman's motion to refer the Bill to a Select Committee for further examination.

At the heart of the proposed amendments lies the creation of a "creditor-initiated insolvency resolution process". This would allow credito...