The much-awaited bill to amend the Insolvency and Bankruptcy Code (IBC) was introduced in the Lok Sabha on Tuesday by Finance Minister Nirmala Sitharaman, who said that the proposed changes are aimed at reducing delays, maximising value for all stakeholders, and improving governance of all processes under the Code. The proposed modifications include provisions to ensure faster admission of insolvency cases, an out-of-court mechanism to address “genuine business failures”, and introduction of group and cross-border insolvency frameworks, and a slew of others.
Introduced in 2016, the IBC promised an overhaul of insolvency resolution with the aim to rescue and reorganise distressed companies through a time-bound process, prioritising…