New Delhi (IANS) The government on Wednesday cleared the introduction of seven amendments to the Insolvency and Bankruptcy Code (IBC) in the Parliament, including raising maximum resolution time frame limit to 330 days from the current 270 days.
Accordingly, the government is now expected to introduce the IBC (Amendment) Bill, 2019.
"The amendments aim to fill critical gaps in the corporate insolvency resolution framework as enshrined in the Code, while simultaneously maximising value from the Corporate Insolvency Resolution Process (CIRP)," an official statement said.
"This will enable the government to ensure maximisation of value of a corporate debtor as a going concern while simultaneously adhering to strict timelines," it added.
As per the statement, other amendments include "inclusion of commercial consideration in the manner of distribution proposed in the resolution plan within the powers of the Committee of Creditors".
The changes in the IBC process would also entail bringing more clarity over implementation of restructuring schemes such as mergers, de-mergers, amalgamations etc. as part of the resolution plan. Also, a time frame may be given for acceptance or rejection of an application for initiating insolvency process against an entity.