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…