Cabinet approves amendments to Insolvency and Bankruptcy Code Bill

The Cabinet on July 17 approved the Amendment to the Insolvency and Bankruptcy Code (IBC) Bill.

The amendment places a greater emphasis on the need for time-bound disposal of cases at the application stage. This includes a deadline to complete the resolution process of an insolvent company within 330 days, which includes litigation.

The amendment has also allowed for the votes of financial creditors' to be as per the decision of the highest voting share of financial creditors. The amendment also allows for dissenting creditors to get a minimum liquidation value retrospectively.

The Cabinet has also approved of the extension of the term of the 15th Finance Commission up to November 30.