NEW DELHI: The Central Government on January 18,  proposed a slew of changes to the insolvency law, including fast-tracking the process and expanding the scope of pre-packaged framework.

The ministry has also proposed re-designing the Fast-Track Corporate Insolvency Resolution Process to permit financial creditors to drive the insolvency resolution process for a CD outside of the judicial process,  while keeping uup some involvement of the Adjudicating Authority to improve the legal certainty of the final outcome.

The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets. The Code has already undergone various amendments. "To strengthen the functioning of the IBC, changes to the Code are being considered in relation to the admission of corporate insolvency resolution process (CIRP) applications, streamlining the insolvency resolution process, recasting the liquidation process, and the role of service providers under the Code," the ministry said in a notice.

Among other changes, the corporate affairs ministry has suggested developing a state-ofthe-art electronic platform that can handle several processes under the Code with minimum human interface. Another proposal is to expand the pre-packaged insolvency resolution framework t to certain categories of corporate debtors in addition to Micro, Small and Medium Enterprises (MSMEs). 

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