Centre seeks comments on proposed changes to insolvency law ahead of Budget 2022-23

New Delhi: The Central government, on Thursday (December 23), announced that it has invited comments on several amendments proposed to the insolvency law. The Centre is inviting recommendations on provisions related to the time period for approval of resolution plans as well as avoidable transactions and wrongful trading, according to a report by PTI.

The Insolvency Law Committee (ILC) has recently proposed the amendments to make changes to the current law, that some feel isn’t appropriate in certain cases related to insolvency. 

The Central government has sought comments on the recent proposals by January 13, 2022, a few weeks ahead of the Union Budget 2022. 

According to the notification, the “changes have been proposed to enable a swift admission process, streamline provisions pertaining to avoidable transactions and wrongful trading and norms relating to the time period for approval of resolution plans,” PTI reported. 

Moreover, there have been amendments suggested in relation to the closure of the voluntary liquidation process and the IBC Fund.

For those unversed, the Central government had brought the Insolvency and Bankruptcy Code (IBC) into force in 2016. Since then, the law has already undergone various amendments. Also Read: Year Ender 2021: 5 IPOs that doubled investors money in a snap

The recently proposed amendments are related to the Corporate Insolvency Resolution and Liquidation Framework under the Insolvency and Bankruptcy Code. The code is currently being administered by the corporate affairs ministry. Also Read: WhatsApp new update: Soon, voice calling interface could change for good

Live TV

Live TV