IBC Amendments: Faster Resolution, Says IBBI Chief

New Delhi, Aug 21 (PTI) The proposed amendments to the insolvency law will help in saving time and ensure faster resolution of stressed assets, IBBI Chairperson Ravi Mital said on Thursday.

On August 12, the government introduced a bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code (IBC), proposing a raft of changes, including provisions to reduce the time taken for admission of insolvency resolution applications.

The bill, which has been referred to a select committee of the Lok Sabha, has also proposed a raft of amendments, including an out-of-court mechanism to address genuine business failures, group and cross-border insolvency frameworks.

At a round table here on Thursday on 'IBC and Stressed Assets' organised by industry body Assocham, IBBI Chairperson Ravi Mital said once the amendments come into force, time taken for the resolution process is expected to come down.

The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the IBC that provides for a market-linked and time-bound resolution of stressed assets.

Mital also emphasised the importance of coordination between the Committee of Creditors (CoC) and Resolution Professional (RP) concerned for the insolvency resolution process.

Delays in the admission process continue to be a challenge in insolvency cases, Mital was quoted as saying in a release issued by Assocham.

He also called upon consultants, advisors, bankers, and creditors to take an active role in this transition, contribute to confidence-building, and support the development of a stronger insolvency framework for the future, as per the release.

The IBC, which came into force in 2016, has been amended six times so far and the last amendment was made in 2021.

After the first amendment in 2017, the Code was also amended once in 2018, twice in 2019 and once in 2020.