Page 2 - Latest Updates on IBC
Parliamentary panel to review IBC and propose reforms for efficiency
The Centre is expected to table an amendment Bill in the monsoon session as a parliamentary panel examines the Code amid concerns flagged by the Supreme Court
 "Parliamentary panel to review IBC and propose reforms for efficiency")
Parliamentary panel flags 'ambiguities' in IBC; govt mulls amendments
Following the status quo put on BPSL's liquidation, a parliamentary panel has deemed the existing IBC not up to the mark
IBBI allows RPs to invite resolution plans for individual asset sales
Amendments to IBBI regulations enable flexibility in insolvency resolution by permitting asset-wise resolution plans with committee of creditors' approval
 "IBBI allows RPs to invite resolution plans for individual asset sales")
IBC not meant to shield violators of consumer rights from prosecution
The Supreme Court observed that staying the penalties imposed by the National Commission would set a dangerous precedent, allowing developers to delay justice by invoking insolvency proceedings
 "IBC not meant to shield violators of consumer rights from prosecution")
60% resolution plans under IBC approved in last three years: IBBI data
IBBI data reveals 30,000 cases with defaults of Rs 13.8 trillion settled pre-admission under IBC till December 2024; creditor recovery at 32.8 per cent by March 2025
Govt likely to amend IBC to scrap prior CCI nod for insolvency bids
Experts feel a clarity by the government on this matter would bring relief to bidders who were concerned about approaching CCI before the CoC approval
IBC requires urgent reforms to meet demands across various sectors
Court orders and reforms do not compensate for the legislative clarity needed in IBC for sector-specific insolvency processes
Don't stretch your power beyond statute: NCLT chairperson cautions litigant
NCLT Chairperson R Sudhakar says tribunal must operate within IBC and Companies Act as BPSL liquidation returns to Delhi bench after Supreme Court's recent ruling
 "Don't stretch your power beyond statute: NCLT chairperson cautions litigant")
Big Four rejig IBC verticals with fewer insolvency cases getting filed
Between the June and December quarter of FY25, the number of insolvency applications initiated by financial creditors went down from 150 to 84
 "Big Four rejig IBC verticals with fewer insolvency cases getting filed")
BPSL case: JSW Steel likely to cite NCLT 2019 order in SC review plea
JSW Steel and lenders will move the Supreme Court after its verdict struck down the BPSL resolution plan, citing lack of Form H and equity infusion in the structure
 "BPSL case: JSW Steel likely to cite NCLT 2019 order in SC review plea")
Over 30K IBC cases settled pre-admission covering ₹13.78 trillion: Ibbi
Citing a study by IIM Ahmedabad, John said creditors in resolved cases realised 32 per cent of admitted claims and 168 per cent of liquidation value
 "Over 30K IBC cases settled pre-admission covering ₹13.78 trillion: Ibbi")
Best of BS Opinion: Of arbitration, agreements, and artificial intelligence
Our opinion page today makes a strong argument for better management of the arbitration process, as well as the precedent that the Supreme Court's judgement sets
 "Best of BS Opinion: Of arbitration, agreements, and artificial intelligence")
Top steelmakers likely to rebid for distressed Bhushan Power & Steel assets
SC's order to liquidate Bhushan Power may prompt renewed interest from top steel companies, but investor concerns grow over reversals of long-settled IBC deals
 "Top steelmakers likely to rebid for distressed Bhushan Power & Steel assets")
SC ruling on BPSL resolution may reset IBC process as JSW plans review plea
"No prudent resolution applicant would submit a plan if there remains a lingering fear that some state authority might overturn it decades later", says Former IBBI chairperson M S Sahoo
 "SC ruling on BPSL resolution may reset IBC process as JSW plans review plea")
Supreme Court scraps IBC buyout of Bhushan Power & Steel by JSW Steel
Calls resolution plan 'illegal', orders BPSL's liquidation
 "Supreme Court scraps IBC buyout of Bhushan Power & Steel by JSW Steel")
Parliamentary panel flags concerns, suggests ways to improve IBC outcomes
'Operational creditors' interests are often overlooked; they should get adequate representation'
 "Parliamentary panel flags concerns, suggests ways to improve IBC outcomes")
Downward shift in liquidations seen under IBC: IBBI chairperson Ravi Mittal
Of the total cases ending in liquidation, 211 had admitted claims of more than Rs 1,000 crore, with aggregate claims of Rs 9.59 lakh crore
 "Downward shift in liquidations seen under IBC: IBBI chairperson Ravi Mittal")
Ibbi proposes coordinated insolvency resolution for interconnected entities
Ibbi has noted that the current IBC process treats each entity as a standalone unit, overlooking the intricate web of interdependencies often present in modern business ecosystems
Companies in India not using IBC enough to resolve insolvency: IBBI chief
IBBI data suggests that the share of CIRPs initiated by corporate debtors or companies is declining over time
 "Companies in India not using IBC enough to resolve insolvency: IBBI chief")
NPA cases referred for resolution, amount involved drop in 2023-24
As a result, the amount involved and the amount recovered in absolute terms was also lower than the amount involved and recovered in 2022-23
 "NPA cases referred for resolution, amount involved drop in 2023-24")
