Insolvency & Bankruptcy code: Govt looking at ways to avoid frivolous bids

It is being considered whether criminal proceedings should be initiated against those not implementing resolution plans or should they be barred from bidding for other companies undergoing resolution

The government is looking at ways to ensure 'frivolous bids' are not placed under the insolvency and bankruptcy code (IBC), according to Corporate Affairs Secretary Injeti Srinivas. The government was mulling whether criminal proceedings should be initiated against those not implementing resolution plans or they should be barred from bidding for any other company undergoing resolution under the IBC, Srinivas said on Tuesday.

Another thought within the government for stopping frivolous bids is to get a defaulting applicant to pay for the costs incurred during resolution.

Business Standard had reported earlier that the government was planning to find a way