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Insolvency and Bankruptcy Code (Amendment) Bill
August 6 , 2021
1135 days
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- The Parliament passed Insolvency and Bankruptcy Code (Amendment) Bill recently.
- This Bill replaces the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 that was promulgated on April 4, 2021.
- The recent amendment bill will provide for an alternate insolvency resolution process for micro, small and medium enterprises (MSMEs).
- This resolution will be called as “pre-packaged insolvency resolution process (PIRP)”.
- It will introduce a time-bound process to resolve issues of insolvency of the corporate debtors within 330 days.
- This process of resolution is called as Corporate Insolvency Resolution Process (CIRP).
- Under the CIRP, debtor or its creditors will be able to apply for initiation of CIRP in case there is default of Rs. 1 lakh.
- A committee of creditor will also be constituted under CIRP to decide on insolvency resolution.
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