Overview
- The Union Cabinet approved final amendments to the Insolvency and Bankruptcy Code, with the government planning to table the Bill in the ongoing Parliament session, according to officials.
- Officials said the Cabinet cleared the select committee’s 11 recommendations, including barring a company’s resolution professional from later serving as its liquidator and clarifying that claims outside an approved plan are extinguished without retrospective effect.
- New timelines seek to cut delays: NCLT must admit or reject cases within 14 days and dispose liquidation orders in 30 days, while NCLAT faces a three‑month outer limit for decisions.
- A creditor‑initiated insolvency resolution process (CIIRP) introduces an out‑of‑court route requiring 51% financial creditor support to trigger, a 150‑day completion period with a possible 45‑day extension, and a debtor‑in‑possession approach.
- The Bill empowers rules for group insolvency and a cross‑border regime, adds tools to pull past avoidance transactions into the estate, and requires former employees and service providers to share information during resolution.