Summary of the IBBI Code (Amendment) Act, 2019 issued on 05/08/2019 is listed below:
- The Insolvency and Bankruptcy Code (Amendment) Act, 2019:
Ministry of law and Justice has issued the Insolvency and Bankruptcy Code (Amendment) Act, 2019 wherein eight sections are amended, as detailed:
- The Corporate insolvency resolutions process mandatorily must be completed within three hundred and thirty days from the insolvency creation date including the extension period. Further if the resolution process of any corporate debtor is not completed within 330 days, then it should be completed within 90 days from the notification of this amendment.
- Debt payment of operational creditors is streamlined. Further, this amendment recognises the debts of the financial creditors who do not vote in favour of the resolution for payments.