Insolvency Law.pdf

The Insolvency and Bankruptcy Code (Amendment) Act, 2019 amends the Insolvency and Bankruptcy Code, 2016, to address difficulties and gaps in the corporate insolvency framework. Key amendments include:

Clarifying the definition of "resolution plan" to include provisions for corporate restructuring, such as merger, amalgamation, and demerger
Requiring the Adjudicating Authority to provide reasons in writing for not admitting or rejecting an application within 14 days
Mandating that the insolvency resolution process not extend beyond 330 days, including time taken in legal proceedings
Facilitating decision-making in the committee of creditors by allowing the authorized representative to cast votes for financial creditors
Ensuring that operational creditors receive an amount not less than the liquidation value of their debt or the amount that would have been received under the resolution plan
Making the resolution plan binding on the Central Government, State Government, or local authority to whom a debt is owed
* Allowing the committee of creditors to take a decision to liquidate the corporate debtor at any time after its constitution.