The 1st Insolvency Law Committee Report and Insolvency and Bankruptcy Code (Amendment), Ordinance 2018
Ironing-out the initial implementation issues under the Insolvency and Bankruptcy Code
The 1st Insolvency Law Committee was set up in November, 2017 to evaluate the working of the Insolvency and Bankruptcy Code, 2016 and suggest reforms for its seamless implementation. The Committee’s report identified various issues arising from, and impacting the functioning of, the insolvency resolution and liquidation processes under the Code.
Among other measures, it recommended amendments to – (i) clarify ambiguities in relation to the status of home buyers as financial creditors; (ii) resolve the confusion around permissibility of withdrawal of a case after its admission; (iii) provide necessary guidance on the manner of obtaining statutory approvals for resolution plans; (iv) empower the government to carry out modifications to the Code in relation to Micro, Small and Medium Enterprises; and (ii) re-calibrate the voting thresholds for swifter decision-making in the committee of creditors.
Most of the Committee’s recommendations were implemented through the Insolvency and Bankruptcy Code (Amendment) Ordinance 2018, which was subsequently passed by Parliament as the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018.
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About the Contributors
Shreya is a Senior Resident Fellow and Lead, Law, Finance and Development. Her areas of interest are company law, insolvency law, corporate governance and responsible business conduct, fintech and financial inclusion. At Vidhi, she has worked on a diverse range of projects including research and drafting of the Insolvency and Bankruptcy Code, 2016 and consequent amendments and subordinate legislation, review of offences under the Companies Act, 2013 and drafting of the National Action Plan on Business and Human Rights. Shreya completed her B.B.A. LL.B. (Hons.) from the National Law University, Jodhpur in 2012 and her LLM from the Queen Mary University of London on a Chevening Scholarship in 2019, where her dissertation focused on peer-to-peer lending. She also worked as a Legal Consultant in the Financial Law Unit of the Legal Transition Team at the European Bank for Reconstruction and Development, London in 2019. Prior to joining Vidhi, she worked as an associate at Luthra & Luthra Law Offices, Delhi in the mergers & acquisition and real estate team.
Vedika was a Senior Resident Fellow and led Vidhi’s work in the field of Competition Law. She also led projects commissioned by various ministries in diverse areas including domestic and cross-border insolvency and company law for the Corporate Law and Financial Regulation team at Vidhi. Vedika completed her B.A. LL.B. (Hons.) from Gujarat National Law University in 2011 and an MCL from University of Cambridge in 2014.
Aishwarya is a Senior Resident Fellow working in the area of Corporate Law and Financial Regulation. At Vidhi, she has primarily worked on engaged/commissioned projects from various ministries, statutory authorities and regulators, where she provides legal research and drafting support at various stages of law-making. Aishwarya works on a variety of legal and regulatory matters and allied issues in public policy, chiefly related to insolvency laws, competition laws and corporate governance laws. Aishwarya graduated with a B.A. LL.B (Hons.) from Jindal Global Law School (JGLS) in 2017. During her time there she worked on two human rights reports and attended specialised courses in Advanced Corporate Law and Competition Law. She has also interned under Senior Advocate Ramji Srinivasan, in Avantha Holdings Ltd. and in leading law firms.
Param was a Research Fellow at Vidhi.
