NEW DELHI: The Lok Sabha on Monday approved the Insolvency and Bankruptcy Code (Amendment) Bill, aimed at speeding up insolvency proceedings to resolve cases related to defaulting companies. The Bill introduces a mandatory 14-day timeline for admitting insolvency applications once a company’s default has been established.
Finance Minister Nirmala Sitharaman said that the government has proposed a set of 12 amendments to the Insolvency and Bankruptcy Code to further strengthen the resolution ecosystem. Sitharman said the primary reason for IBC resolution delays is extensive litigation, and the IBC Bill proposes penalties to prevent abuse of process.
FM Sitharaman said in the Lower House that the Insolvency and Bankruptcy Code (IBC) has…