The proposed amendments to the Insolvency and Bankruptcy Code (IBC) such as introduction of group insolvency, cross-border insolvency and creditor-initiated insolvency are encouraging as they could boost recovery rates which been persistently low due to the lengthy resolution process, according to a report released on Monday.
The strengthening of NCLT and NCLAT manpower along with other legal reforms are expected to reduce the burden on the judiciary, according to the ICRA report.
It expects the proposed amendments introduced to IBC code, in Parliament along with other reforms and proposals put forth by Ministry of Corporate Affairs (MCA) and Insolvency and Bankruptcy Board of India (IBBI), to reduce recovery timelines and improve…