Government invites comments on proposed amendments to the Insolvency Act
New Delhi:
The government on Thursday invited comments on various amendments proposed in the insolvency law, including the time period for approval of resolution plans, as well as provisions related to avoidable transactions and wrongful trade.
The amendments have been proposed by the Insolvency Law Committee (ILC). Comments have been sought by January 13, 2022.
According to a communication, it has been proposed to enable faster admission process, streamline the provisions related to avoidable transactions and change the norms related to wrong trading and time period for approval of resolution plans.
In addition, amendments have been suggested regarding the voluntary liquidation process and the closure of the IBC Fund.
The Insolvency and Bankruptcy Code (IBC) came into force in 2016 and has already gone through several amendments.
The proposed amendments are for the Corporate Insolvency Resolution and Liquidation Framework under the code, which is being administered by the Ministry of Corporate Affairs.
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