• Notification Date: 11-11-2022
  • Notification No: N/A

Changes are being introduced to Insolvency Rules

The Central Government is considering reforming the Insolvency and Bankruptcy Code (IBC). This would help in adhering to companies’ time bound resolution. The reforms will most probably put into effect in the winter session of the Parliament in December.

The ministry of Corporate Affairs (MCA) has conducted consultations with the stakeholders in the last few months and discussed the matter. The stakeholders have been made aware of the changes in the Insolvency and Bankruptcy Code Amendment Bill, 2022.

In the new bill there will be provisions that would reduce time for admission of corporate insolvency resolution process. A particular time period will be fixed for the tribunals for the approvals and rejection of resolution plans. According to the statement of an official, several amendments have been made to give enhanced power to the committee of creditors and new measures have been taken to ease the resolution.

It is also reported that the centre is eager to introduce cross-border insolvency. An internal committee has been formed by the MCA to look into the applicability of the cross-border insolvency. The committee has proposed a regulatory framework for this matter. It recommends that the access to insolvency process in India must be given to foreign representatives through IBBI authorization system.