4 Things to Know About Insolvency & Bankruptcy Code Amendment Bill

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Former Features Writer
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Liquidation of a company is not the sole agenda of the Insolvency and Bankruptcy Code Amendment Bill that was passed by the Parliament on August 1st. Here are 4 things you need to know about the IBC code.

Time-bound Application
Laying greater emphasis on time-bound disposal at the application stage itself, the code urges NCLT to determine the existence of default within 14 days of receiving a resolution application and may accept or reject it. 

Resolution Plan
The IBC Bill defines resolution plan of corporate debtor as a going concern may include the provisions for "corporate restructuring, including by way of merger, amalgamation and demerger".

Time of Resolution
As per the IBC Amendment Bill, the resolution process must be completed within 330 days including time for any extension granted and for legal proceedings. The time limit was 270 days earlier. 

Power to Secured Creditors
The Amendment bill is likely to protect secured creditors over operational creditors in the matter of distribution of assets of the corporate debtor.

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