The Insolvency and Bankruptcy Code (Amendment) Act, 2019

Aug 12, 2019 | by Avantis RegTech Legal Research Team


The Ministry of Law and Justice on August 05, 2019, notifies the Insolvency and Bankruptcy Code (Amendment) Act, 2019 to further amend the Insolvency and Bankruptcy Code, 2016. It will come into force on the date when the Central Government appoints.

The amendments made in the Insolvency and Bankruptcy Code, 2016 are:

 A resolution plan may include provisions for the restricting of the corporate debtor which includes merger, amalgamation and demerger. [Section 5 (26)]

 The corporate insolvency resolution process shall mandatorily be completed within a period of 330 days from the insolvency commencement date. And where the insolvency resolution process of a corporate debtor is pending and has not been completed within the stipulated time period, then such process should be completed within a period of 90 days from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019. [Section 12(3)]

 The committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution and before the confirmation of resolution plan, including any time before the preparation of the information memorandum. [Section 33]


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