Changes in IBC will allow provision for mediation to cut costs, time

Pre-packaged insolvency, individual bankruptcy mechanism also to be put in place

The government is planning changes in the Insolvency and Bankruptcy Code (IBC) to insert a provision for mediation to cut costs and the time taken to resolve cases.

The review of the IBC will enable the government to put in place a mechanism for pre-packaged resolution, an individual bankruptcy scheme, and use of artificial intelligence. 

Though there is a time stipulation of 180 days, and can be extended by another 90 days for resolution to complete after a case has been admitted by the National Company Law Tribunal (NCLT), timelines are not strictly adhered to.

For instance, the Essar Steel