They propose to focus on the creditor-initiated insolvency resolution process which involves creditors settling insolvency matters out of court, thereby reducing the burden of cases on insolvency tribunals. The National Company Law Tribunal (NCLT) will only have to approve the resolution plans, thus reducing the timelines under the IBC. Mint takes a closer look at the amendments.
Why was the Insolvency and Bankruptcy Code (IBC) introduced in 2016?
The Insolvency and Bankruptcy Code, one of India’s new legal laws, was introduced in 2016 to deal with insolvent companies and individuals that could not repay their debt, which sometimes ran into hundreds of crores.
A year later, the…