Govt proposes slew of changes to insolvency law
   Date :19-Jan-2023

insolvency law 
Business Bureau
To further strengthen the insolvency law regime, the Government on Wednesday proposed a raft of changes, including fast-tracking the process, expanding the scope of the pre-packaged framework and developing an electronic platform with minimal human interface.
The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets. The Code has already undergone various amendments.
“To strengthen the functioning of the IBC, changes to the code are being considered in relation to the admission of corporate insolvency resolution process (CIRP) applications, streamlining the insolvency resolution process, recasting the liquidation process, and the role of service providers under the Code,” the Ministry said in a notice.
Corporate Affairs Ministry has suggested developing a state-of-the-art electronic platform that can handle several processes under the Code with minimum human interface.
“It is being considered that this e-platform may provide for a case management system, automated processes to file applications with the AAs, delivery of notices, enabling interaction of insolvency professionals with stakeholders, storage of records of corporate debtors undergoing the process, and incentivising participation of other market players in the IBC ecosystem,” the notice said.