The Lok Sabha on Monday cleared the Insolvency and Bankruptcy Code (Amendment) Bill, paving the way for a shift from the the previous barely used fast-track resolution mechanism to a new framework that allows creditors to trigger insolvency proceedings. Finance Minister Nirmala Sitharaman said the Insolvency and Bankruptcy Code (IBC) has played a key role in resolving corporate distress, with 1,376 companies successfully settled so far, leading to recoveries amounting to ₹4.11 lakh crore. The proposed changes aim to speed up the admission of insolvency cases while also introducing provisions to deal with group insolvency and cross-border distress situations.
“The earlier framework was not fully utilised. It is now being replaced by a…