NEW DELHI, July 23: A bill was introduced in the Lok Sabha on Monday seeking to change the classification of Micro, Small and Medium Enterprises (MSMEs) from that based on “investment in plant, machinery and equipment” to “annual turnover”.
The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018, introduced by Micro, Small and Medium Enterprises Minister Giriraj Singh, seeks to amend Section 7 of 2006 to provide for micro enterprise and to be defined as a unit where the annual turnover does not exceed Rs 5 crore.
A small enterprise will be defined as a unit with turnover of more than Rs 5 crore and up to Rs 75 crore and a medium enterprise will be a unit with annual turnover of more than Rs 75 crore but not more than Rs 250 crore.
The new bill was introduced after the minister took consent of the house to withdraw The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2015.
Amendment of Insolvency and Bankruptcy code, 2016: The bill has been introduced seeking to amend the Insolvency and Bankruptcy Code 2016 to clarify if allottees under a real estate project should be treated as financial creditors.
The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018 was introduced by interim Finance Minister Piyush Goyal and seeks to replace the ordinance brought by the government earlier this year.
The bill provides for inserting an explanation under Section 5 of the bill clarifying that any amount raised from an allottee under a real estate project shall be deemed to be an amount having a commercial effect of borrowing.
It also allows the withdrawal of a resolution application submitted to the National Company Law Appellate Tribunal (NCLAT) under the Code on an application made by the applicant with the approval of 90 per cent of voting shares of the committee of creditors.
Amendment of Commercial Courts Act, 2015: The Bill aims at improving India’s standing in the ease of doing business.
The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill, 2018, was introduced by Law Minister Ravi Shankar Prasad. It seeks to withdraw an ordinance brought by the government earlier this year.
The Bill provides for establishment of commercial courts at the district judge level for the territories over which respective high courts have ordinary original civil jurisdiction. The bill seeks to amend the Commercial Courts Act, 2015 and provides for reducing the specified value of commercial disputes from the existing Rs 1 crore to Rs 3 lakh, enabling the parties to approach the lowest level of subordinate courts for speedy resolution of disputes. (IANS)