Insolvency and Bankruptcy code

Insolvency and Bankruptcy code was passed by Lok Sabha on 5 May 2016. The Code received the assent of the President of India on 28 May 2016. Insolvency and Bankruptcy code aimed to repeal the Presidency Towns Insolvency Act, 1909 and Sick Industrial Companies (Special Provisions) Repeal Act, 2003, among other related enactments. On implementation of the Insolvency and Bankruptcy code, it would seek to speed up debt recoveries and restructurings by setting a deadline of 180 days to decide the fate of a company that defaults. To resolve non-performing loans, the RBI has recently directed banks to refer  large NPA cases for resolution under the Insolvency and Bankruptcy Code. such companies being referred to NCLT under the RBI directive account for a combined debt of around Rs 2.5 lakh crore.

The Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 on 05.10.2017. According to the Amended Regulations, a Resolution Plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the Corporate Debtor

The Amendments are available at www.mca.gov.in and www.ibbi.gov.in.