Insolvency and Bankruptcy Code Amendment Bill introduced in Lok Sabha

Finance Minister Nirmala Sitharaman on Monday introduced the Insolvency and Bankruptcy Code Amendment 2021 Bill, which will replace an ordinance, in the Lok Sabha on various subjects amid uproar by members of opposition parties.

The Insolvency and Bankruptcy Code Amendment Ordinance, 2021, became effective from April 4, 2021. Under this, borrowers coming under small and medium units have got the facility of insolvency settlement process under pre-packaged arrangements. This includes the identification and selection of an authorized representative, a public announcement and related party claims, draft information, lender and creditor committee meetings, invitation to dispute settlement plans, original dispute settlement and competition between the best dispute settlement and corporate debtors. Also facilities like management with dispute settlement professionals are provided. All resolution plans under the Insolvency and Bankruptcy Code are required to be approved by the National Company Law Tribunal.