Insolvency and Bankruptcy Code (IBC) Amendment Bill
The IBC Amendment Bill introduces significant reforms aimed at enhancing the insolvency and bankruptcy process in India. Key changes include amendments to the look-back period and provisions for group and cross-border insolvency.
Look-back Period Amendment
- The look-back period will now be counted from the initiation of insolvency instead of its commencement.
- This change aims to capture a broader range of transactions, particularly those meant to exclude assets from the insolvency process.
- The adjustment addresses concerns that corporate debtors may delay application admissions to limit the scope of avoidable transactions.
Resolution Professionals and Liquidators
- Resolution professionals and liquidators must carefully analyze transactions to ensure genuine business operations are not misclassified as preferential or fraudulent.
Asset Resolution and Government Concessions
- Aligns with recent IBBI regulations allowing part resolution of assets, including mergers and sales.
- Ensures government concessions, such as licenses and permits, remain valid during the resolution process.
Committee of Creditors (CoC) and Adjudicating Authority
- The CoC maintains a supervisory role during liquidation.
- The adjudicating authority has 30 additional days to allow the CoC to rectify resolution plan defects before rejection.
- The authority can separately approve the implementation of the resolution plan and the distribution manner.
Significance and Objectives
- The amendments aim to enhance IBC efficacy, make projects more bankable, and align with the Code's objectives of efficient and fair insolvency resolution.
