The Insolvency and Bankruptcy Code (Amendment) Bill, 2019

The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 aims to amend certain provisions of the Insolvency and Bankruptcy Code, 2016. The bill provides for clarification on the voting pattern of financial creditors represented by authorized representatives, ensuring that all creditors are treated fairly without unduly burdening the Adjudicating Authority. It also seeks to fill gaps in the corporate insolvency framework, including mandating that the insolvency resolution process be completed within 330 days from the insolvency commencement date. The bill empowers the Board to make regulations for specifying the manner of payment of debts, ensuring that operational creditors receive an amount not less than the liquidation value of their debt or the amount that would have been received if the amount to be distributed had been distributed in accordance with the order of priorities. The bill further clarifies that the committee of creditors may take the decision to liquidate the corporate debtor anytime after its constitution and before the confirmation of the resolution plan.