CENTRAL ACTS AND ORDINANCES - No. 3 of 2018 - The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Amendment Ordinance 2018.

© [Regd. No. TN/CCN/467/2012-14. GOVERNMENT OF TAMIL NADU [R. Dis. No. 197/2009. 2017 [Price: Re. 0.80 Paise. TAMIL NADU GOVERNMENT GAZETTE PUBLISHED BY AUTHORITY No.23] CHENNAI, WEDNESDAY, JUNE 7, 2017 Vaikasi 24, Hevilambi, Thiruvalluvar Aandu – 2048 Part IV—Section 4 CENTRAL ACTS AND ORDINANCES MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 4th May, 2017 / Vaisakha 14, 1939 (Saka) THE BANKING REGULATION (AMENDMENT) ORDINANCE, 2017 No. 1 OF 2017 Promulgated by the President in the Sixty-eighth Year of the Republic of India. An Ordinance further to amend the Banking Regulation Act, 1949. WHEREAS the stressed assets in the banking system have reached unacceptably high levels and urgent measures are required for their resolution; AND WHEREAS the Insolvency and Bankruptcy Code, 2016 has been enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets to promote entrepreneurship, availability of credit and balance the interest of all the stakeholders; AND WHEREAS the provisions of Insolvency and Bankruptcy Code, 2016 can be effectively used for the resolution of stressed assets by empowering the banking regulator to issue directions in specific cases; AND WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:- 1. (1) This Ordinance may be called the Banking Regulation (Amendment) Short title, Ordinance, 2017. and commence- (2) It shall come into force at once. ment. DTP IV-4-(23)—1 [ 167 ]168 TAMIL NADU GOVERNMENT GAZETTE [Part IV—Sec. 4 Insertion of 2. In the Banking Regulation Act, 1949, after section 35A, the following sections shall 10 of 1949. new be inserted, namely:- sections 35AA and 35AB. Power of ‘35AA. The Central Government may by order authorise the Reserve Bank to issue Central directions to any banking company or banking companies to initiate insolvency resolution Government process in respect of a default, under the provisions of the Insolvency and Bankruptcy 31 of 2016. to authorise Code, 2016. Reserve Bank for Explanation.—For the purposes of this section, “default” has the same meaning issuing assigned to it in clause (12) of Section 3 of the Insolvency and Bankruptcy Code, 2016. 31 of 2016. directions to banking companies to initiate insolvency resolution process. Power of 35AB. (1) Without prejudice to the provisions of section 35A, the Reserve Bank may, Reserve from time to time, issue directions to the banking companies for resolution of stressed Bank to assets. issue directions in (2) The Reserve Bank may specify one or more authorities or committees with respect of such members as the Reserve Bank may appoint or approve for appointment to advise stressed banking companies on resolution of stressed assets.’. assets. PRANAB MUKHERJEE, President. DR. G. NARAYANA RAJU, Secretary to the Govt. of India. (Re-published by order of the Governor) A. ARUNAGIRI, Additional Secretary to Government, Law Department. PRINTED AND PUBLISHED BY THE DIRECTOR OF STATIONERY AND PRINTING, CHENNAI ON BEHALF OF THE GOVERNMENT OF TAMIL NADU.