The government on Thursday invited comments on various amendments proposed to the insolvency law, including to provisions related to time period for approval of resolution plans as well as avoidable transactions and wrongful trading. The amendments have been proposed by the Insolvency Law Committee (ILC). The comments have been sought till January 13, 2022.
According to a communication, changes have been proposed to enable a swift admission process, streamline provisions pertaining to avoidable transactions and wrongful trading and norms relating to time period for approval of resolution plans.
Besides, amendments have been suggested in connection with closure of the voluntary liquidation process and the IBC Fund.
The Insolvency and Bankruptcy Code (IBC) came into force in 2016 and has already undergone various amendments.
The proposed amendments are for the Corporate Insolvency Resolution and Liquidation Framework under the Code, which is being administered by the corporate affairs ministry.