Changes to insolvency rules welcome, but complex cases may overwhelm system

While many of the proposed amendments to the IBC, such as cross-border and group insolvency, will make the resolution process smoother, certain issues such as limited judicial capacity could weaken

The nine-year-old Insolvency and Bankruptcy Law has already undergone six rounds of amendments since its inception 2016, but none have been so wide-ranging and corrective in action as those proposed in the Bill tabled in the recently-concluded monsoon session of Parliament. Unlike its initial years, when ordinances changed the Insolvency and Bankruptcy Code’s (IBC) key provisions overnight, the latest round of proposed changes have come after deliberations lasting three years.

 

While bringing in enabling provisions for cross-border and group insolvency had been long-pending reforms, experts have called the introduction of creditor-led insolvency among the big ticket reforms proposed in the