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 leads the work at the intersection of law, finance and development at Vidhi. She is currently focusing on independent research work relating to financial inclusion, tech and corporate governance. She has worked on several engaged projects with the International Financial Services Centres Authority, Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of India. Shreya completed her LLB from National Law University, Jodhpur in 2012 and LLM from Queen Mary, London on a Chevening scholarship in 2019. She also worked with the European Bank for Reconstruction and Development, London in 2019. Prior to joining Vidhi in 2014, she worked as an Associate at Luthra & Luthra Law Offices, New Delhi.
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 was 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.
