 "IBC, Insolvency and Bankruptcy Code")
The IBC Amendment Bill uses the phrase “it is hereby clarified” 17 times. One such clarification restores the original trigger for initiating corporate insolvency resolution: Admission if a default exists, rejection if it does not, and no other grounds. This undoes Vidarbha Industries (2022) and reaffirms what the Bankruptcy Law Reforms Committee, the original notes on clauses, and Innoventive Industries (2017) had already settled.
Another restores the original liquidation waterfall by overturning Rainbow Papers (2022), which had put government dues under the Gujarat Value Added Tax Act, 2003, at the same level as secured creditors. The Bill makes it clear
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