With the introduction of The Insolvency and Bankruptcy Code (Amendment) Bill, 2019, on 24 July 2019 in the Rajya Sabha, the government has sought to amend the Insolvency & Bankruptcy Code, 2016. Earlier, the Insolvency and Bankruptcy Board of India (IBBI), through a notification dated 23 July 2019, has amended certain IBBI regulations. This article aims to discuss and analyze the recent proposed amendments to the code and the amendments by the IBBI to regulations regarding insolvency professionals (IP), insolvency professional agencies (IPA) and model bye-laws and governing boards of IPAs.
Extension of resolution period
The time period for the resolution process of a corporate debtor, which is currently 270 days, would be extended to 330 days. Any extension granted for the completion of the resolution process or the time taken in legal proceedings would be factored in counting of such 330 days. However, if the process is not completed within 330 days, an order requiring the corporate debtor to be liquidated under section 33(1)(a) will be made. The proposed amendment further provides that the National Company Law Tribunal must explain in writing the reasons for the delays if an application has not been admitted or rejected within 14 days.
It also proposes that if the corporate insolvency resolution process (CIRP) is pending and not completed within 330 days, the resolution should be completed within an additional 90 days from the date of the commencement of the bill.
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Abhishek Dutta is the founder and managing partner of Aureus Law Partners. Vineet Shrivastava is a partner and Aayushi Agarwal is an associate at the firm.
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